Tesco is planning a new discount retail brand format for the UK, with a view to directly challenging the rapid growth of Aldi and Lidl in recent years. A post spotted on employment social network LinkedIn reveals that Tesco, the UK’s largest retailer, is recruiting staff for a new store format at sites in northeast England, and just north of London.
According to The Irish Times, the sites have been owned by Tesco since before Dave Lewis became CEO in 2014, but remained unused since then. According to analysts, the new store openings will have to be “bold” if they are going to success.
“Tesco will be competing with Aldi and Lidl in what they do best,” said Berenberg analyst Dusan Milosavljevic said. “Half-measure, trial-like store openings are doomed to fail.”
It is predicted the new stores will open in September, and may be called “Jack’s”, in honour of Tesco founder Jack Cohen.
It is unclear whether the new brand will arrive in Ireland as part of the new initiative.