The rumour mill has been churning for years that Tesco would be bringing out a “new retail store format”. Now JACKS has officially arrived with the opening of its first two stores in Cambridgeshire and Lincolnshire. It’s great to see Tesco taking the challenge to Lidl and Aldi, instead of trying to adapt a Tesco store which their model doesn’t support. By starting from scratch, building a new format, developing the consumer offering, limiting its range, Tesco is creating a distinctive brand and combining British produce with its market trading heritage with a gesture to their founder Jack Cohen… potentially a perfect partnership!
It appears that JACKS is well placed to succeed with highflyer Lawrence Harvey at the helm, his experience working for Aldi will be invaluable to JACKS. Harvey knows what makes a successful grocery discounter and will be able to combine his knowledge with Tesco’s strengths to build consumer loyalty. Additionally, Tesco has gained knowledge following the Tesco/Booker acquisition, a wealth of additional insight in particular for small format convenience, cost savings and increased productivity which surely will be advantageous.
But the real question will be how JACKS will truly differentiate themselves… how will they bring innovation without cannibalising Tesco sales?
All the signs appear that Tesco’s (JACKS) has made the correct decision. Creating and developing a brand and building an identity isn't something that should be underestimated, Tesco has heavily invested in the vision and now it's up to Harvey and his team to not just challenge the grocery discounters but more importantly to take market share!
It’s an exciting time for grocery retail, proving again that if you don’t innovate you will be left behind.
Only time will tell!
Categories: Retail Recruitment