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Jack's wins round one of the discount supermarket price war Jack's wins round one of the discount supermarket price war
(about 1 month later)
Jack’s has won round one in the supermarket discounters price war according to a Guardian analysis – but Aldi is promising to fight back with cuts to match or beat the prices at the new chain launched by Tesco.Jack’s has won round one in the supermarket discounters price war according to a Guardian analysis – but Aldi is promising to fight back with cuts to match or beat the prices at the new chain launched by Tesco.
In a price check on a basket of 18 popular items, Jack’s was cheaper than rivals Lidl, Aldi and Tesco’s main chain outlets. Jack’s cornflakes, tea bags, pizza, milk and wine were either cheaper than rivals or price-matched.In a price check on a basket of 18 popular items, Jack’s was cheaper than rivals Lidl, Aldi and Tesco’s main chain outlets. Jack’s cornflakes, tea bags, pizza, milk and wine were either cheaper than rivals or price-matched.
On most items, Jack’s prices are identical to those at Aldi, rather than Lidl. The chain has chosen to set prices locally to match or beat the closest geographic rival. The first Jack’s store in Chatteris, Cambridgeshire, is a two-minute drive from an Aldi.On most items, Jack’s prices are identical to those at Aldi, rather than Lidl. The chain has chosen to set prices locally to match or beat the closest geographic rival. The first Jack’s store in Chatteris, Cambridgeshire, is a two-minute drive from an Aldi.
Like shopping 30 years ago: first Jack’s customers sample new storeLike shopping 30 years ago: first Jack’s customers sample new store
Aldi’s cheapest loaf of bread is 49p – and so is Jack’s. An iceberg lettuce at either store is 48p, while bananas are 13p each. The cheapest tea bags at both stores are 85p for a box of 80, while yoghurts work out at 11p per pot at each. Both have toilet paper at 23p a roll and baked beans at 23p a tin.Aldi’s cheapest loaf of bread is 49p – and so is Jack’s. An iceberg lettuce at either store is 48p, while bananas are 13p each. The cheapest tea bags at both stores are 85p for a box of 80, while yoghurts work out at 11p per pot at each. Both have toilet paper at 23p a roll and baked beans at 23p a tin.
Lidl used cheap wine prices to entice bargain-hungry shoppers, and Jack’s is following a similar strategy. Its house white, “a lively dry white wine with refreshing flavours of apples and citrus fruits” is just £3.15 a bottle. That matches the lowest price for wine (of above 10% alcohol content) at Lidl, and is significantly cheaper than Aldi’s £3.69.Lidl used cheap wine prices to entice bargain-hungry shoppers, and Jack’s is following a similar strategy. Its house white, “a lively dry white wine with refreshing flavours of apples and citrus fruits” is just £3.15 a bottle. That matches the lowest price for wine (of above 10% alcohol content) at Lidl, and is significantly cheaper than Aldi’s £3.69.
No thanks, Jack's: we do have actual taste budsNo thanks, Jack's: we do have actual taste buds
It’s worth noting that the duty on a standard 75cl bottle of wine in England and Wales is £2.16, with VAT added on top. Then there is the cost of the glass bottle itself and transportation. So shoppers buying full-strength wine at £3.15 a bottle are paying only 30p or 40p for the wine, possibly even less.It’s worth noting that the duty on a standard 75cl bottle of wine in England and Wales is £2.16, with VAT added on top. Then there is the cost of the glass bottle itself and transportation. So shoppers buying full-strength wine at £3.15 a bottle are paying only 30p or 40p for the wine, possibly even less.
Jack’s has also opened a new front in the milk price war, which has forced many dairy famers out of business amid claims they are being forced to sell at below cost price. Jack’s is selling semi-skimmed at 43.5p a litre, compared with 44p a litre in Aldi and mainstream Tesco supermarkets.Jack’s has also opened a new front in the milk price war, which has forced many dairy famers out of business amid claims they are being forced to sell at below cost price. Jack’s is selling semi-skimmed at 43.5p a litre, compared with 44p a litre in Aldi and mainstream Tesco supermarkets.
Aldi vowed to fight back, promising to undertake a full price review and adjust prices if necessary. Aldi said: “We welcome choice and competition in the fastest growing area of the grocery market. Our customers will always pay the lowest grocery prices in the UK every time they shop with us.”Aldi vowed to fight back, promising to undertake a full price review and adjust prices if necessary. Aldi said: “We welcome choice and competition in the fastest growing area of the grocery market. Our customers will always pay the lowest grocery prices in the UK every time they shop with us.”
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