Leading British supermarket chain Tesco is rumored to be on the verge of launching a new discount chain after it advertised for workers to staff new format stores, several news outlets have reported.
Chatter in the UK business press highlighted the forthcoming arrival of Jack’s, which could launch as early as September in a bid to claw back some of the market share it has lost to German discounters Aldi and Lidl.
The name Jack’s is said to be an homage to founder Jack Cohen. One source said the name has not been confirmed but said a Tesco subsidiary had tried to register the name as a trademark.
One of the job ads for Tesco’s new stores reads: “The new retail format will be operated separately from the core Tesco business and as such benefits offered will be different from those offered at Tesco.”
According to The Guardian, some of the chain’s smaller-format stores, called Tesco Metro, are set to re-open under the new name in a few weeks.
The news follows revelations in February that Tesco had earmarked two potential sites – the Lincolnshire and Cambridgeshire sites – and entrusted former Aldi operations director Lawrence Harvey and advisors from Boston Consulting Group to spearhead the project.
Tesco, under the leadership of Dave Lewis, continues to make news in an effort to stave off a push from Aldi and Lidl, as well as Sainsbury’s effort to buy Asda in a $10 billion deal. It acquired wholesaler Booker earlier this year and is partnering with French supermarket Carrefour to jointly source products try to keep prices down and widen product offerings.