Tesco (LON: TSCO) could launch its very own discount chain, Jack’s, as early as September this year.
The supermarket giant is advertising for new staff, whilst confirming a Tesco Metro in Merseyside will reopen under a new name.
“If Tesco puts some proper welly behind it in terms of infrastructure and store openings it could stand a decent chance of success,” said Bryan Roberts, an analyst at the retail marketing firm TCC Global.
The group is hoping to launch a supermarket to rival discounters Aldi and Lidl.
Aldi became the UK’s fifth-largest grocer in 2017, overtaking the Co-op. The group already surpassed Waitrose in 2015.
Figures from Kantar Worldpanel show that Aldi’s market share reached 6.9 percent in the 12 weeks to 28 January. Lidl increased its share to 5 percent, whilst Tesco, Sainsbury’s (LON: SBRY), Asda and Morrisons (LON: MRW) all lost market share over the past year.
Aldi and Lidl account for £1 in every £8 spent in UK supermarkets, it emerged last year.
It is not just Aldi and Lidl who have been taking customers from Tesco. B&M, Wilko and Poundland have increased the range of food sold in their stores, attracting more shoppers.
In February, Tesco promised that it would “develop new formats to better serve customers.”
There have been several rumours about this new format but the supermarket has declined to comment. The new format is a key part of its acquisition of Booker.
Charles Wilson, the chief executive of Booker, became the boss of the Tesco’s core UK and Ireland retail operations in March.
“He brings substantial commercial and retail experience and has an exceptional track record of increasing performance and driving growth in customer-focused businesses,” said the group chief executive, Dave Lewis.