Tesco plans for mystery new-format stores

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Tesco is planning to open a number of stores in a mystery new format.

The store chain, the country’s biggest food retailer, would not comment, but there are strong hints the new-look stores will be aimed at challenging discounters, such as Aldi and Lidl.

A whole range of jobs are on offer at new-format stores in Wandsworth, London , Chatteris, Cambridgeshire and Immingham, Lincolnshire.

Reports suggest it could be called Jack’s, after Tesco founder Jack Cohen.

Tesco’s move comes as retailers face an increasingly competitive environment.

Since their entry into the UK, discount chains Aldi and Lidl have steadily increased their share of the market and now account for 14% of grocery sales.

On top of that, internet behemoth Amazon has edged slowly but steadily into food retailing.

Last year, Amazon bought upmarket grocer Whole Foods. In the UK, Amazon offers food sales through its Amazon Fresh service, although currently that is still focused on Greater London and parts of the South East.

Fighting back

The established major supermarkets have been trying to stay in the game

Earlier this month, Tesco announced it was planning a buying partnership with France’s Carrefour – a “strategic alliance” whereby the two will try to use their joint buying power to cut costs and offer lower prices to customers. This came after Tesco took over the wholesale giant, Booker.

In April, Sainsbury’s said that it was in advanced talks to buy Asda from US retail giant Walmart.

Last year, Tesco – which employs 440,000 people – reported profits of £1.3bn with sales of £57.5bn.

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