1. ITV Report

Tesco to announce new budget brand in Cambridgeshire

Photo: PA

Tesco is expected to announce the launch of new discount stores to take on the likes of Aldi and Lidl. It's thought the budget brand will be called “Jack’s” in a nod to Jack Cohen, the founder of Tesco.

The UK's biggest retailer has invited reporters to join chief executive Dave Lewis at its site at Chatteris in Cambridgeshire on September 19. The supermarket giant simply said it will be "sharing some exciting news" but did not give any further detail.

The site at Chatteris has been empty since it was built Credit: PA

In July, Tesco advertised for staff for a "new store format" in Chatteris,seeking to recruit retail assistants, retail customer service assistants and retail managers. The site has been empty since it was built.

Tesco is Britain's grocery market leader with a share of 27.4% while Aldi and Lidl have increased their combined share to 13.1%, according to the latest Kantar Worldpanel data.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "Aldi and Lidl account for over 13% of take-home grocery sales and are growing at 10% each year.

"Strategically, it makes sense for Tesco to consider its own discount chain and try to capture some of that growth. The big four now make up less than 70% of grocery sales - down from 76% a decade ago. The proposed Sainsbury's-Asda merger acknowledges this decline, as did Tesco's own acquisition of Booker, which gave it access to wholesale and out-of-home sales. The opening of a new discount chain would be further recognition of this shift."

– Fraser McKevitt, Kantar Worldpanel