Less than four years after launching what it hoped would be a challenger brand to Lidl and Aldi, Tesco is shuttering Jack’s. The news comes as the retailer also hit headlines for a drastic decision to overhaul its overnight operations, resulting in the loss of an estimated 1,600 jobs.
Jack’s was set up in September 2018 in an attempt to lure customers away from Aldi and Lidl, which had experienced stellar growth in the years before.
Marketing played strongly on its ‘British’ heritage to help it stand out from the German discounters, with the promise that ‘8 out of 10 products are grown, reared or made in Britain’. It worked with ad agency EveryFriday on the launch branding, packaging, poster and store promotion.
But the writing was arguably on the wall from the start. Within months of opening its first cohort of stores, it was forced to begin closure starting with Rawtenstall.
Now the brand is being culled completely. Of its 13 remaining stories, seven will be shuttered while a further six will be turned into Tesco branches.
Tesco said that having launched the brand to ”gain knowledge from running stores with a low-cost operating model” it has now “absorbed” that experience into Tesco.
“The time is right to focus on continuing to deliver great value in our core business,” it said.
130 workers in the seven closing stores and at the Jack’s head office will be impacted. According to LinkedIn, Jack’s has several marketing managers as well as a brand communications manager.
The news came just hours before Tesco confirmed it was also overhauling its stock replenishment operations, as well as transforming 36 petrol stations to be pay-at-pump overnight.
The combined changes will put 1,600 jobs at risk.
”These changes are part of our efforts to serve customers in the best way possible in a competitive market by running our business as simply and efficiently as possible, so we can re-invest in the things that add most value for customers,” Tesco added.