LONDON, ENGLAND - Tesco is preparing a new chain of discount stores, a move many see as a direct offensive against Aldi and Lidl, according to Bloomberg. Reports of recruitment opportunities in the new store format could be found on LinkedIn and the stores would be located at sites in Immingham in northeast England, and Chatteris, about 80 miles north of London. Tesco acquired these sites prior to CEO Dave Lewis taking over in 2014, and have remained untouched since.
“Tesco will be competing with Aldi and Lidl in what they do best,” Berenberg analyst Dusan Milosavljevic said by email. He also suggested that the move will need need to be bold, as “half-measure, trial-like” store openings are often doomed to fail.
Tesco may name the chain Jack’s, in homage to its founder Jack Cohen, according to This is Money, which reported that the company may begin opening the stores in September.
The alliance between Tesco and French supermarket Carrefour SA has already been made to slash Tesco's prices and increase its leverage with suppliers. Will this new format give Tesco an additional leg up on its competition? What moves will Aldi and Lidl make next? AndNowUKnow will continue to report the latest.
