The chain was launched under the previous management and on the positive side, it was not a disaster that the American company Fresh & Easy was
Tesco PLC (LSE:TSCO) is to close Jack’s, the chain of stores it launched to take on the challenge of hard discounters Aldi and Lidl.
Seven Jack’s stores will be closed while six others will be converted into hypermarkets bearing the Tesco fascia. Tesco stores typically carry around 35,000 product lines, while Jack’s has around 2,600 product lines, presented more like items in a warehouse than a supermarket, similar to the model adopted by Aldi and Lidl.
Launched in September 2018 and named after company founder Jack Cohen, the supermarket giant had big plans for the chain with 10-15 openings in the first six months of operation.
Today’s decision represents a setback for the company’s ambitions to stave off the threat from hard discounters, but management put a positive spin on it.
“We have learned a lot from Jack’s and it has helped Tesco to become more competitive, more efficient and to strengthen our value proposition, particularly through the launch of the Aldi price match,” said Jason Tarry, Managing Director of Tesco UK. .
Tesco shares rose 0.8% to 299.4p by mid-morning.