Micheal McIintyre referred to Aldi as the store you go to if you can't afford to go to Waitrose and Lidl as the store you go to if you can't afford to go to Aldi. Then there is newcomer Jack's which according to Tesco's CEO is for the 'economically challenged'. So I guess it's the place you go to if you can't afford to go to Lidl's
Can Tesco's new discount brand steal ground from the German discounters?
The jury is very much out. As a convert from Waitrose to Aldi I will be interested to see what strategy the newcomers adopt. So far not a pipsqueak via my Tesco Clubcard communication channel and yes they have my permissions to contact me. No wooing, no special treatment, like everyone else I have learned about Jack's through the media.
Aldi was in fact started by the mother of Karl and Theo Albrecht. It is short for Albrecht Discounts. Tesco have continued the 'family' theme of naming its new discount store after Jack Cohen, Tesco's founder. However, this is not going to matter a jot to the public it is trying to attract. It will succeed or fail by its ability to attract and retain customers.
Jack's is apparently all about being British but the Germans have spent a huge amount of effort making themselves as British as possible. The shops are festooned with Union Jacks to show produce comes from the UK. I doubt if the average customer even knows that the shops are in fact German.
Customer service has also been a big thing and the Aldi staff are now trained to comment on your avocado, choice of dragon fruit and ask whether you have a busy week ahead.
Their own brands of electrical goods, cosmetics, and baby stuff has won countless awards from all the major endorsers like Which and Good Housekeeping and they have their own brand names like Mamia, Lacura etc . No mention of 'essentials' anywhere. Slowly, slowly they are morphing into the more upmarket brands like Waitrose, Sainsbury and M&S with one exception...they are half the price.
Jack's however has been positioned not as a new brand retailer but as the downmarket version of it's big sister Tesco. That's a tough one to sell even to the 'economically challenged' whoever they may be.
“If Tesco is wanting to lend its reputation to Jack’s, then which bit of it is it lending? Clarity around that needs to be precise,” she says. “Given Aldi and Lidl now offer good prices for good quality, without patronising their shoppers by telling them they’re on a limited income and should feel shame for not being wealthy, Tesco will have to do the same with Jack’s. Only if Jack’s is focused on a clear, specific angle on this budget grocery market sector will it win.”