Where could Tesco open new Jack's discount stores in Norfolk?
PUBLISHED: 13:08 20 September 2018 | UPDATED: 18:20 20 September 2018
Since announcing its new discount store chain Jack's, Tesco has remained tight-lipped on the possible 15 locations it is considering for future stores.
Since announcing its new discount store chain Jack’s, Tesco has remained tight-lipped on the possible 15 locations it is considering for future stores.
The supermarket chain launched the brand this week, with the first outlet opening in Chatteris, Cambridgeshire, and a second in Lincolnshire.
But despite radio silence on exact locations, executives have said that Jack’s stores could be placed next to existing Tescos, or will take over smaller Express or Metro units.
These factors will be considered alongside consumer appetite for lower-priced stores such as competitors Aldi and Lidl, which have proved successful in a number of Norfolk locations.
Retail expert Adrian Fennell, a partner at Roche Chartered Surveyors, specialises in helping retail and leisure companies find facilities in Norfolk.
He said Tesco directors would approach finding locations in three ways.
“The first will be to have a store in the suburb of a large city; the second would be to put one in a fairly strong market town without a Lidl or an Aldi; and the third will be to put it in a larger town and see how it does head-to-head with competitors.
“If they do go head-to-head, they’ll need units with good visibility near arterial roads, and good car parking.
“They would need to be in proximity of competitors, say within 800 yards, but not next door. If we look at Aylsham Road for example, they have a third-generation store there with good parking and a big store, so you’d have to have extremely good connections and visibility.”
He added: “It’s less about targeting low income areas now. That was what it was about for Aldi and Lidl when it started, when they were seen as a cheap food store, but now they’ve worked on their image in the UK to bring it to the standard of Germany, where it’s seen as a good quality but competitively priced store.”
So where could Jack’s be opening next in Norfolk?
One area which has proven to be particularly popular for lower-priced shops is near Mile Cross, between Fakenham Road and Aylsham Road, where two Lidls, an Aldi, and a Tesco Express are already in situ.
This could be driven by residents of the suburb, on average, having lower disposable incomes.
The area is in the category of the 20% most deprived areas in the UK (according to data released last year by the Department for Communities and Local Government).
There would be intense competition in the area, but it would give Tesco an immediate way to test the strength of its offer with Jack’s.
• King’s Lynn
King’s Lynn has an Aldi, Lidl, and Tesco superstore all located on the same street, from Gaywood Road on to Lynn Road.
The area would fit within the target demographic of Jack’s stores. Further out of town, there are two Tesco Express stores within a few miles of each other in North and South Wootton, offering the chance for Tesco to redevelop one into a Jack’s.
• Great Yarmouth
While the income profile of customers will be one consideration when choosing a new store location, executives will also be looking at footfall.
According to Great Yarmouth’s borough council, the town is the third biggest seaside resort in the UK, with its tourism industry worth £600m in 2016.
Latest figures show the town welcomes on average around six million visitors on day visits every year.
This could create a pull to the location, with the store offering holiday makers a cheaper alternative to meals out.
Seasonal demand would be supplemented by year-round trade from Yarmouth residents.
The town sits within the country’s top 10% of most deprived areas, and is already home to chains such as Lidl, Aldi, Poundland, Home Bargains, B&M, and Savers.