Jobs to be created at Tesco's new Jack's discount store in Chatteris

Bosses of the supermarket giant say the new Jack's store in Fenland Way has created 30 jobs.

The jobs will be a mix of part-time and full-time with the store opening to the public tomorrow. (Thursday)

It is understood the hourly rate paid to staff at Jack's will not be lower than that paid to workers with Tesco and in many cases is likely to be higher.,

But the creation of Jack's has sparked a warning from officials of the shopworkers' union Usdaw that recruits to the budget retailer will get fewer benefits.

Pauline Foulkes, Usdaw National Officer, said: "Tesco have today announced the launch of a new store format, as part of their response to a challenging and highly competitive retail sector.

"The reopening of a number of stores under the new format is welcome job creation in a sector that is currently suffering so many job losses.

"The staff in the new stores are on different terms and conditions to other Tesco staff, which involves a higher hourly rate but fewer other employment benefits.

"As the recognised trade union for the new venture, Usdaw continues in a constructive dialogue with the company and we will be seeking to recruit and organise Jack’s staff to ensure that they have a voice in the business.”

Jack's - named after Jack Cohen, the founder of Tesco, has been created as Tesco seeks to combat the success of German discounter supermarkets Aldi and Lidl.

Opening the Chatteris supermarket, Tesco chief executive Dave Lewis said the focus of Jack's would be on great tasting food that is grown, reared or made in Britain at the lowest possible prices to bring customers outstanding value.

Jack's stores will be low-cost, no frills or added extras with a simplified range of quality products at low prices.

Mr Lewis said: "Jack Cohen championed value for customers and changed the face of British shopping.

"He’s an inspiration for all of us and that same spirit still drives Tesco now."

Tesco is recognised as the UK's leading supermarket with a 27.4 per cent share of the grocery market.

However, its dominance is threatened by Aldi and Lidl, which combined enjoy a 13.1 per cent share of the grocery market.

But retail expert Dr Gordon Fletcher, of the University of Salford, warned that making a success of Jack's would not be easy.

He said: "Jack's will need to work hard to dent the success of Aldi and Lidl, and will also need to prove its value against the wider Tesco offering including its existing chain of One Stop convenience stores.

“The challenge for Tesco will be to continuously compete at an unfamiliar price point on common household products.

"Aldi and Lidl both successfully compete in the retail sector by using a consistent layout in custom-built stores with a supply chain that sources items from suppliers across Europe."

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