Supermarket giant Tesco brought quarter three of 2018 to a close with the grand opening of its highly anticipated discount chain ‘Jacks’. Named after Tesco founder Sir Jack Cohen, the discount store was not only tipped to be cheaper than rival German Chains Aldi and Lidl, but also offer consumers a simpler shopping experience - boasting a high percentage of British produce.
However, Credico UK has been examining the launch of Jacks and is unsure whether it will successfully hit the mark with consumers. Jacks has a significantly slim lined range of just 2,600 products, compared to Tesco’s 25,000. This decision has been made to provide consumers with a simpler, more efficient shopping experience. However; back in the summer, a study by Tilda revealed that British consumers are a nation of ‘culinary freestylers’; more willing than ever to experiment in the kitchen with global cuisines. With this in mind, Credico UK is unsure whether Jacks limited range will provide consumers with enough choice to fulfil their culinary interests; which could drive them back to larger retailers.
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While Jacks currently has just two stores; one in Cambridgeshire and one in Lincolnshire, the brand’s proposed plan to expand will see Jacks stores replace the UK's lowest-performing Tesco Express’ and Metros. It has also been reported that each Jacks store will have no more than 25 workers, and will feature more self-checkouts than manned tills, calling into question whether the brand is valuing its low price point over the customer experience.
“It’s true that Aldi is popular with consumers because it offers quality products at a low price point. However, it is also one of the only food retailers to favour manned checkouts over self-service – something we feel has played a significant role in its overall popularity,” outlines a spokesperson for Credico UK.
Furthermore, Credico UK thinks it’s important to remember that Lidl and Aldi have worked hard for many years to secure their place in the hearts of the nation’s consumers. Relying on more than an attractive price point, both brands have adapted over the years to fit in with the UK’s market requirements and create their own USPs, and that Jack’s will certainly have to do the same.
“While Jacks is sure to cater to consumers looking for a great deal, we’ve seen first-hand how offering the lowest prices isn’t guaranteed to win consumer loyalty. Copying the format set out by Aldi and Lidl will not be enough. Our experience in the marketing industry has taught us that you’ve got to invest in the bigger picture and create an immersive brand experience that outperforms consumer expectations; that’s the key to sustainably outperforming competitors,” concludes the firm’s spokesperson.
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