As Tesco prepares for the launch of its new store concept, reportedly a discount banner named Jack’s, its brand new test marketing hits the press today. Heavily influenced by discounter Lidl, the new communication focuses on total basket price, and emphasizes everyday low prices.
Tesco brings the private label to the forefront, with a strong focus on the everyday value ready meal range Hearty Food (Source: City A.M)
Lidl's "all this for" ads compare total baskets with single item prices at competitor grocers. (Source: Lidl website)
As Tesco reveals more details about its new format venture, the core challenges persist. It is no more about price comparison of single SKUs, but how varied a basket can be while spending less. Tesco needs to deliver not only the pricing but also the range and quality as UK shoppers have grown used to shopping at discounters . Recent pruchasing alliance with Carrefour will support the new pricing efforts, both for branded goods and private label, together with improved supply chain efficiencies through Booker merger.
For further insight into our take on Tesco’s new discount plans, please read the following articles:
Should we discount Tesco’s latest new format plans in the UK?
5 Ways Tesco’s new format will struggle to compete with Aldi and Lidl