Uncertainty rises over Tesco-Jack’s impact on Booker’s supply network

Analysts and retailers have expressed uncertainty over the consequences Tesco's rumoured Jack's discounter chain could have on Booker's supply network. 

Shore Capital head of research Clive Black warned there could be a negative impact on Booker symbol groups. “Another fascia to the Tesco family introduces a degree of complication to the business.

"The open question is whether Jack’s will be supplied by the Booker distribution chain and whether this would put a spanner in the operation.”

Although Mosi Patel, of Family Shopper in Ashton-under-Lyne, expressed concern about being undercut if a Jack's opened nearby, he said there could be advantages for his supply. “We might be able to access a new range of products if Tesco uses the Booker network to supply Jack’s. There could be a range of affordable and fresh products to help boost our current range.”

The comments come as floorplans of an upcoming Jack's store seen by RN suggest the model will focus on faster shopping trips and food to go. The 20,000sq ft shop in Cambridgeshire is one of 60 rumoured to be opening in September.

Read more: EXCLUSIVE: Inside Tesco's secret discount chain store – Jack's