The major chain has reportedly earmarked 60 existing stores to transform into a low-price supermarket.
And that new chain is set to operate under a brand new name – with reports suggesting it will be “Jack’s”.
This name would be a reference to Tesco founder Jack Cohen, and an obscure Tesco subsidiary is said to have recently tried to register the name as a trademark.
Tesco, which declined to comment on the plan, has already started advertising for staff and is offering £9 an hour.
The new stores – which will replace mostly Metro town-centre convenience stores – could open as early as September, the Daily Mail reports.
Up to 60 could open in the first wave, with some areas already seeing stores closed to be refurbished in time for the launch.
The big move is Tesco’s new blueprint to overcoming rising supermarket chains Lidl and Aldi – both of which have doubled their share of the UK grocery market to nearly 13% in five years.
The “Big 4” – including the likes of Tesco, Asda, Sainsbury’s and Morrisons – have already tried to fight back by launching new product ranges and cutting backs.
But Tesco have decided to go one further – with one source suggesting some of the 60 locations Tesco have chosen include London, Cambridgeshire, Lincolnshire and Liverpool.
Analyst Steve Dresser, of market researcher Grocery Insight, told the Mail: “It's difficult to take on Aldi and Lidl, but if Tesco can get it right this could run and run.”
On most of the stores replacing Metro outlets, he added: “There is an opportunity to look at any stores still struggling and say, ‘let's see if we can try something else here rather than closing them and losing them to a competitor’.”
