Tesco's new weapon against it's war with Aldi and Lidl

Tesco has come up with idea of setting up it's own discount store to take on Aldi and Lidi.

The discount stores will be named ' Jacks' and will be selling food at lower prices than their normal mainstream Tesco stores do.Surely this will create competition with itself ?

Will Tesco simple copy Aldi and Lidl business model in hope their magic will boost Tesco's profits? I recall Netto been brought back by Sainsbury's only to fail in their war against Aldi.

Isn’t One-Stop already owned, or at least, run by Tesco’s ?

There are, apparently, 700 odd One-Stops already.

Isn’t One-Stop already owned, or at least, run by Tesco’s ?

There are, apparently, 700 odd One-Stops already.

I think Tesco want to take on Aldi and Lidl by doing what they do . One Stop are just local stores not really much competition to Aldi. Tesco has lost customer's to Aldi and Lidl they want them back and ' Jack's' is their answer.

If they want to take on Aldi and Lidl they just need to lower their prices for their own brand products, no messing about with smaller stores with new names.

Every time I see a "One Stop" or any of the other convenience stores, I just think "higher prices" and don't shop there.

Tesco is also cutting 1700 jobs= https://www.theguardian.com/business/2018/jan/22/tesco-to-shed-1700-jobs-in-new-management-shake-up

The problem Tesco have is that their own brand stuff is low quality as well as low cost; Aldi and Lidl have the advantage of a large European network, currently offering economies of scale, plus their own brand items are decent quality and therefore better value for money.

If they want to take on Aldi and Lidl they just need to lower their prices for their own brand products, no messing about with smaller stores with new names.

 

Every time I see a "One Stop" or any of the other convenience stores, I just think "higher prices" and don't shop there.

That would be more logical than setting up a new brand of shops.

If they want to take on Aldi and Lidl they just need to lower their prices for their own brand products, no messing about with smaller stores with new names.

 

Every time I see a "One Stop" or any of the other convenience stores, I just think "higher prices" and don't shop there.

I doubt that they want to dilute their primary brand and move Tescos entirely down market, that would probably cost them as many customers as they would gain.

I doubt that they want to dilute their primary brand and move Tescos entirely down market, that would probably cost them as many customers as they would gain.

but why would a tesco customer stick to paying higher prices when they know they can buy off tesco at a lower price?

Same reason that some people still shop in Tesco and don't go to Lidl or Aldi?

Same reason that some people still shop in Tesco and don't go to Lidl or Aldi?

yeah but technically it will still be "tesco" under the hood, they wont be going to a different brand properly.

yeah but technically it will still be "tesco" under the hood, they wont be going to a different brand properly.

What do you mean "properly". This happens all the time with companies and people choose to pay for what they choose is right for them. Often it is more than just core product. Its more about convenience, choice, quality, service, style, ingredients.

I concede that a "brand" in reality means nothing when you take a little look beneath the surface to note who owns what. I think a lot of people would be very very surprised.

People who choose to stay in Ibis Budget hotels over a Mercure Hotel are actually giving money to the same "company".

People who choose to eat in cheap and cheerful Toby Carvery whilst others splash out and go to a Miller and Carter steakhouse but they are still giving money to the same organisation.

Trendies buy bottles of Vitamin Water because they dont like to think what goes into all those sugar filled cola drinks, but whoops wouldn't you know it, its all the same company - as is, by the way, kia-ora and Roses cordial.

As for Nestle well.... there are just too many to list.