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Sideysid

Tesco opens discount store Jack's to take on Lidl and Aldi

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https://uk.reuters.com/article/uk-tesco-new-format/tesco-takes-on-german-rivals-with-new-discount-store-format-idUKKCN1LY37H

Can’t see how this will compete with the likes of Aldi and Lidl. Their overheads are lower and are not bogged down former pension commitments etc.

Tesco have made a few failed expansions in the past, i.e. Fresh and Easy, Giraffe etc and got their fingers burnt.

To me, I see this has a grab at straws in reply to the Sainsbury/Adsa merge in a desperate attemp to maintain dominance.

All I see this being is Tesco Value products all put into a different location, which will just take the market share from Tesco as prices get more expensive there.

Some Tesco Value products are from the same suppliers, just smaller/different packaging as the standard stuff, but by enlarge a lot of the stuff is shit. By contrast, Aldi and Lidl’s key appeal is that the quality is generally good at a lower price point.

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I hope they do well out of it, as I don't like the idea of shopping in a German-owned supermarket employing mainly migrants. To say that Tesco have failed at expansions in the past ignores the fact that they are the most successful supermarket not just here but in Poland, Hungary, Czech Republic, Ireland, Malaysia, Slovakia, Ireland. They are also trying to take on huge markets like China and India. They have balls and don't give up easily.

Not sure on the name "Jack's" though.

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3 hours ago, Sideysid said:

https://uk.reuters.com/article/uk-tesco-new-format/tesco-takes-on-german-rivals-with-new-discount-store-format-idUKKCN1LY37H

Can’t see how this will compete with the likes of Aldi and Lidl. Their overheads are lower and are not bogged down former pension commitments etc.

Tesco have made a few failed expansions in the past, i.e. Fresh and Easy, Giraffe etc and got their fingers burnt.

To me, I see this has a grab at straws in reply to the Sainsbury/Adsa merge in a desperate attemp to maintain dominance.

All I see this being is Tesco Value products all put into a different location, which will just take the market share from Tesco as prices get more expensive there.

Some Tesco Value products are from the same suppliers, just smaller/different packaging as the standard stuff, but by enlarge a lot of the stuff is shit. By contrast, Aldi and Lidl’s key appeal is that the quality is generally good at a lower price point.

It confirms that we are in a race to the bottom in food retail.Margins are going to get crushed some more.

The key thing with Aldi-and I've been shopping there for ten plus years-is the footprint.If you want you can be in and out in 20 minutes because the tills are so fast.

I'd try it for sure but as you say Sidey,if all they're gonna do is stuff it full off Tesco Value then they may as well give up now.

One of Tesco's big problems in the UKwas the amount of RPI linked leases they signed up to,add in pension liabilities and you have to say,that to get to 2018 with the stock above £2 is a real achievement.

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I went in Lidls the other week for the first time in ages and thought it more expensive than Tesco when comparing equivalents, Aldi is cheaper though.

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16 minutes ago, sancho panza said:

It confirms that we are in a race to the bottom in food retail.Margins are going to get crushed some more.

The key thing with Aldi-and I've been shopping there for ten plus years-is the footprint.If you want you can be in and out in 20 minutes because the tills are so fast.

I'd try it for sure but as you say Sidey,if all they're gonna do is stuff it full off Tesco Value then they may as well give up now.

One of Tesco's big problems in the UKwas the amount of RPI linked leases they signed up to,add in pension liabilities and you have to say,that to get to 2018 with the stock above £2 is a real achievement.

Tesco/Jack's has some significant advantages over ALDI though.

1. Much larger stores and  particularly car parks; ALDIs are tiny

2. Economies of scale and thus negotiating better supplier agreements

3. British owned

 

4.. ALDI do not often own the land from what I've read. Tesco do.

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4 hours ago, spunko said:

I hope they do well out of it, as I don't like the idea of shopping in a German-owned supermarket employing mainly migrants. To say that Tesco have failed at expansions in the past ignores the fact that they are the most successful supermarket not just here but in Poland, Hungary, Czech Republic, Ireland, Malaysia, Slovakia, Ireland. They are also trying to take on huge markets like China and India. They have balls and don't give up easily.

Not sure on the name "Jack's" though.

No sure about migrants - the Lild/Aldi Ive been in have mainl been Bris on the tills and the floor.

Dont knwo about warehouse.

Im not sure how it can work.

yes, Tesco has loads of under used empty real estate. But the ethos behind the discounter is they stack it high, keep it going. Even the incentives on the till diff from Tescos.

 

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4 hours ago, spunko said:

I hope they do well out of it, as I don't like the idea of shopping in a German-owned supermarket employing mainly migrants. To say that Tesco have failed at expansions in the past ignores the fact that they are the most successful supermarket not just here but in Poland, Hungary, Czech Republic, Ireland, Malaysia, Slovakia, Ireland. They are also trying to take on huge markets like China and India. They have balls and don't give up easily.

Not sure on the name "Jack's" though.

I agree about the name. 

Where I come from, the Jacks means a  toilet.

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1 hour ago, spunko said:

Tesco/Jack's has some significant advantages over ALDI though.

1. Much larger stores and  particularly car parks; ALDIs are tiny

2. Economies of scale and thus negotiating better supplier agreements

3. British owned

4.. ALDI do not often own the land from what I've read. Tesco do.

1.  Aldi don't sell as many different size, tins etc. and versions of the same thing from various supplies. I don't see that as a bad thing, it's easier to find stuff

2. Aldi have 700 in the UK and plan to pass 1000 by 2022

4. Tesco leaseback? https://www.independent.co.uk/news/business/news/tesco-agrees-sale-and-leaseback-deal-2021109.html

Surely this Jack's idea is because margins are being squeezed and the top brass need to find a new way to bump their own pay and perks up?  Maybe they can cut down staff numbers and pay them less by allowing ex-Tesco staff to re-apply for jobs at Jacks?

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17 minutes ago, Democorruptcy said:

1.  Aldi don't sell as many different size, tins etc. and versions of the same thing from various supplies. I don't see that as a bad thing, it's easier to find stuff

2. Aldi have 700 in the UK and plan to pass 1000 by 2022

4. Tesco leaseback? https://www.independent.co.uk/news/business/news/tesco-agrees-sale-and-leaseback-deal-2021109.html

Surely this Jack's idea is because margins are being squeezed and the top brass need to find a new way to bump their own pay and perks up?  Maybe they can cut down staff numbers and pay them less by allowing ex-Tesco staff to re-apply for jobs at Jacks?

The point of Jack's is to sell one of each item though. Remains to be seen if it will just be Tesco Value range rebranded, I hope not, although I don't think the Tecso Value brand is that bad anyway personally.

49 stores out of 3500 are leased then. ALDI have 700, or less than 1/5th of Tesco...

54 minutes ago, spygirl said:

No sure about migrants - the Lild/Aldi Ive been in have mainl been Bris on the tills and the floor.

Dont knwo about warehouse.

Im not sure how it can work.

yes, Tesco has loads of under used empty real estate. But the ethos behind the discounter is they stack it high, keep it going. Even the incentives on the till diff from Tescos.

 

Maybe it depends on your area. All EEs whenever I've been in them, and bloody grumpy as well.

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3 minutes ago, spunko said:

The point of Jack's is to sell one of each item though. Remains to be seen if it will just be Tesco Value range rebranded, I hope not, although I don't think the Tecso Value brand is that bad anyway personally.

49 stores out of 3500 are leased then. ALDI have 700, or less than 1/5th of Tesco...

I don't know how many in total are leased. That was just a link to one deal.

Does your 3,500 Tesco include Tesco Express that are tiny compared to Aldi?

 

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2 minutes ago, Democorruptcy said:

I don't know how many in total are leased. That was just a link to one deal.

Does your 3,500 Tesco include Tesco Express that are tiny compared to Aldi?

 

Apparently about half of Tesco stores are leased, from a 2015 article anyway:

https://www.theguardian.com/business/2015/mar/20/guardian-analysis-tescos-property-portfolio-in-detail

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I think it's a good ideal, better to be the one cannibalising your own sales than ALDI/LIDL et al. Also might have advantages over them...I stopped going to my local LIDL because the queues at the tills were getting a joke. If you're just doing a quick shop for 5 things (which is apparently the trend atm, little and often) then you often get stuck behind people doing their monthly shops. I'd definitely use Jacks if they used their self-checkouts.

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5 minutes ago, spunko said:

Apparently about half of Tesco stores are leased, from a 2015 article anyway:

https://www.theguardian.com/business/2015/mar/20/guardian-analysis-tescos-property-portfolio-in-detail

It's the modern way. Boost profits/executive pay selling assets and sweep the muck under the carpet for the next lot to find.

Just like Osborne taking the £28bn Royal Mail pension pot to cut the debt but the future payments were about £38bn

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5 minutes ago, sarahbell said:

Better than Monroe's.

Is it as in "i have Jack shit" 

It’s more obscure.

I need the Jacks= I need a Number One.

Just now, Thorn said:

It’s more obscure.

I need the Jacks= I need a Number One.

A Munroe sounds heavier.

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6 hours ago, spunko said:

Apparently about half of Tesco stores are leased, from a 2015 article anyway:

https://www.theguardian.com/business/2015/mar/20/guardian-analysis-tescos-property-portfolio-in-detail

Just going from memeory here but a lot of these sale and leaseback deals involved Tesco's own pension fund or companies it was in partnership with.the deals allowed ten year buy backs and RPI linked leases.So effectively,Tesco could be paying itself rent.

Obviously,involving third parties could creat problems but iirc a lot of the finance for the purchases were based on tesco's credit rating rather than the actual vehicle for the S+Lback.

Quite how you arrive at a sensible purchase price,I dont know.I'm not a shrareholder and the lack of clarity begs more questions than it answers imho.

Tesco hasa a prodigious pension deficit as I understand it.

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Trouble with Aldi and Lidl they are hardly more than vending machines. I lost my glasses think I might have left them in Aldi and next time I went in I thought maybe I'd ask if they found them. There is no customer service point like most supermarkets and I couldn't be arsed trying to ask the checkout as she was whizzing my stuff through at warp 9.

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On 19/09/2018 at 10:45, spunko said:

I hope they do well out of it, as I don't like the idea of shopping in a German-owned supermarket employing mainly migrants. To say that Tesco have failed at expansions in the past ignores the fact that they are the most successful supermarket not just here but in Poland, Hungary, Czech Republic, Ireland, Malaysia, Slovakia, Ireland. They are also trying to take on huge markets like China and India. They have balls and don't give up easily.

Not sure on the name "Jack's" though.

I lived in South Korea for a year and they took over a super market in my city. Korean beer was so bad that when I tasted a tesco value Lager it actually tasted nice. 

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On 19/09/2018 at 13:57, spunko said:

Tesco/Jack's has some significant advantages over ALDI though.

...

2. Economies of scale and thus negotiating better supplier agreements

Not sure how great an advantage that is.  Aldi & Lidl carry much fewer product lines.  So, for an individual item, let's say... tinned sweetcorn - Aldi or Lidl are buying one size tin, from one manufacturer, for stores all over Europe - while Tesco have Green Giant, Tesco Label and Value label, and each are available in different sizes.

Im not sure which has the greater economies of scale -  I'm just pointing out the Aldi/Lidl model is designed to maximise what they can get.

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33 minutes ago, Bricks & Mortar said:

Not sure how great an advantage that is.  Aldi & Lidl carry much fewer product lines.  So, for an individual item, let's say... tinned sweetcorn - Aldi or Lidl are buying one size tin, from one manufacturer, for stores all over Europe - while Tesco have Green Giant, Tesco Label and Value label, and each are available in different sizes.

Im not sure which has the greater economies of scale -  I'm just pointing out the Aldi/Lidl model is designed to maximise what they can get.

For the Jacks range they'll only be buying one of those lines though, say Value Label. I'm not sure if Aldi or Tesco currently sell more of each respective range but I suspect it's the latter. 

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1 hour ago, Admiral Pepe said:

https://www.dailymail.co.uk/news/article-6188989/Shoppers-queue-rain-Tescos-new-store-Jacks.html

Have to say I'm not a fan of the name or logo. Bit of plagiarism perhaps there as well with a US reastaraunt chain.

Apple Juice 

Jack's own-brand Apple Juice, 1 litre – 95p

Aldi Fresh Apple Juice, 1 litre – 89p

Tesco Pure Apple Juice, 1 litre – 80p

Turkey Breast Mince 

Jack's 2% fat, 500g - £3.35  

Aldi - N/A

Tesco 2% fat 500g - £4.00

Asda 2% fat 500g - £3.29

Sainsbury's 2% fat, 500g - £4.00 

Lidl 2% fat, 500g - £3.19

Pasta 

Jack's Spaghetti, 500g - 45p 

Aldi Cucina Italian Spaghetti, 500g  - 39p

Cereal

Jack's Cornflakes Cereal, 500g - 55p 

Aldi Harvest Morn Cornflakes, 500g   - 72p 

Tesco Cornflakes, 500g - 55p 

Asda Smart-Price Cornflakes, 500g - 45p

Sainsbury's Basics Cornflakes, 500g - 45p

Not cheaper on quite a few things according to the article

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Oh that's annoying. I was really hoping they'd undercut the Germans. Still, it is Mail Online which I'm convinced never runs negative ALDI stories, for some reason.

There are quite a few prices that are cheaper at Jacks. I'm not going all the ways to Cambs to sample it though. :Old:

I also see quite a few Union flags in those photos...

triggered.gif

 

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Just another marketing ploy. Tesco food is fucking awful quality, the value range - jesus they are the worst.

In contrast, Aldi stuff is pretty decent, the more expensive 'specially chosen' type ranges are better than the standard Tesco stuff and are cheaper to boot. Fuck tesco off, i can't stand them.

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