Tesco To Close Jack's Stores

Today (31 January), we are announcing some changes in our stores that will ensure we remain focused and competitive in a fast-changing market.

Over the last two years, as we’ve responded to the challenges of Covid, our business has changed faster than at any other point in our history. Our customers are shopping differently, and many of our colleagues are working differently too.

In October 2021, we shared our new strategic priorities which will ensure we can continue to serve our customers in the best way possible and are well-placed for the years ahead.

This means we need to continuously look at how we can run our business as simply and efficiently as possible, so we can re-invest in the things that add most value for customers. Today, we’re announcing some changes focused on helping us do this.

Jack’s stores

Jack’s was launched in 2018 to celebrate our centenary and founder, Jack Cohen, and to gain knowledge from running stores with a low-cost operating model. We have learned a tremendous amount from Jack’s, and with that experience now absorbed into Tesco, the time is right to focus on continuing to deliver great value in our core business.

Today we are announcing that we will no longer operate stores under the Jack’s brand. Of the 13 Jack’s stores, we will convert six to Tesco superstores, with the remaining seven Jack’s stores to close in the coming months.

What we have learned from Jack’s has helped Tesco become more competitive, more efficient and strengthen the value we offer to customers - including the launch of Aldi Price Match as well as our popular Fresh 5 fruit and veg discount proposition which we have since launched in businesses across the Group. As a result, we have consistently attracted new customers to Tesco from our competitors over the last two years, and their perception of the value they can find at Tesco has increased significantly.

Thanks to its strong recognition with customers for great quality and value, the Jack’s brand will live on, with Jack’s branded products available to independent convenience stores supplied by Booker.

In the six stores to be converted to Tesco, Jack’s colleagues will be automatically offered in-store roles. We will also be recruiting additional colleagues to help us run these stores.

There are 130 roles in the seven closing stores and in head office that will be affected by these changes. We’re working very closely with these colleagues and our priority is to try and find alternative roles at Tesco for all who want to stay with us.

Tesco UK and ROI CEO, Jason Tarry said:

“We have learnt a huge amount from Jack’s and this has helped Tesco become more competitive, more efficient and strengthened our value proposition, including through the launch of Aldi Price Match. In turn, this has enabled us to consistently attract new customers to Tesco from our competitors over the last two years and we know they increasingly recognise the value they can find at Tesco. With the learnings from Jack’s now applied, the time is right to focus on ensuring we continue to deliver the best possible value for customers in our core business.

Our Jack’s brand will continue to be sold across Booker and our symbol brands, bringing great value and quality to even more customers. We want to thank our Jack’s colleagues for all they have done and taught us. Our priority is to find roles within our wider business for all the colleagues who want to stay with us.”

Changes to our counters offer

In 2019, we announced a simplification of our counters business. Customer shopping behaviour has changed considerably over recent years which has led to a decrease in the number of customers using counters on a regular basis in some of our stores. This has made it necessary to review the relevance of each counter within our stores.

In 279 stores where we see local customer demand for meat, fish or hot deli counters, we will continue to offer these counter services. However, in 317 stores where we see the lowest demand, we will close these counters and repurpose the space to better reflect our customers’ needs.

There will be no redundancies related to these counters changes, as affected colleagues will be offered alternative roles.

Changes to overnight roles

Further to the announcement we made yesterday (31 January), we are today announcing changes to our overnight roles in some stores. These changes are part of our efforts to serve customers in the best way possible in a competitive market by running our business as simply and efficiently as possible, so we can re-invest in the things that add most value for customers.

Following successful rollouts, we have shown that by moving our overnight stock replenishment to daytime trading hours, we can ensure more colleagues are available on the shop floor to help customers at peak times.

We have therefore taken the decision to move our overnight stock replenishment into the daytime in 36 large stores and 49 convenience stores. In 37 stores, we will also convert our petrol stations to be pay-at-pump only during overnight hours.

This, combined with other recent changes including the proposed closure of seven Jack’s stores, will put around 1,600 roles at risk of redundancy across our business, but we aim to offer alternative roles at Tesco for as many colleagues as we can.

We currently have around 3,000 vacancies in our business, and we will work individually with each affected colleague to support them during this period of change and help them to find another role.

Tesco UK and ROI CEO, Jason Tarry said:

“We operate in a highly competitive and fast-paced market and our customers are shopping differently, especially since the start of the pandemic. We are always looking at how we can run our business as simply and efficiently as possible, so that we can re-invest in the things that matter most to customers. The changes we are announcing today will help us do this. Our priority now is to support our impacted colleagues through these changes and, wherever possible, find them alternative roles within our business.”

Source : Tesco

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