Tesco: Why the supermarket is going discount with Jack's

Chatteris may have been picked as the place for the first Jack's as it has stores from both German discounters, as well as an empty Tesco store waiting to be brought back to life. Half the building is now a Poundstretcher store, leaving the remaining 26,500 sq ft ready for Tesco's second foray into the discount darkness after a failed attempt in the 1980s with its Victor Value brand. Setting up Jack's - said to be named after Jack Cohen, who founded a grocer in 1919 that later became Tesco - is also an admission that the discounters are now credible competitors, Ms Berg says. Analysts at Bernstein think Tesco will not directly copy the Aldi/Lidl model but opt for a "Cross over between a cash and carry and a discounter", with at least 20 stores to be announced initially. If Amazon does decide to wade into the UK grocery war, it will take more than the launch of a discount chain to save the likes of Tesco.

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