Tesco has launched its much-anticipated new discount chain, Jack’s, in a bid to compete against rivals Aldi and Lidl.

The chain, named after Tesco founder Jack Cohen, has been unveiled to coincide with Tesco’s centenary and will be led by Lawrence Harvey, Tesco’s current retail director for the UK central region.

Over the next six months Tesco will launch 10 to 15 Jack’s stores in the UK. The first two stores will open on 20 September in Chatteris, Cambridgeshire and Immingham, Lincolnshire, on sites which make use of excess Tesco space. The stores to follow will include a mix of entirely new sites, either adjacent to existing Tesco stores or in converted Tesco stores.

Eight out of 10 of food and drink products sold in the Jack’s chain will be grown, reared or made in Britain and stores will stock a unique own brand range, also named Jack’s.

Jack’s will also stock some familiar grocery brands and a range of general merchandise on a “When it’s Gone, It’s Gone” basis.

The chain will operate a low-cost business model that is designed to keep costs low and prices down.

Commenting on the launch of the new discount chain, Tesco group chief executive Dave 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.

“It’s fitting that today, we mark the beginning of Tesco’s celebration of 100 Years of Great Value by launching a new brand, and stores bearing his name: Jack’s. Great tasting food at the lowest possible prices with 8 out of 10 products grown, reared or made in Britain.”

IGD forecasts the UK discount channel will account for £1 in every £7 spent on groceries by 2023. The research charity also predicts that the discount channel will have the highest cash growth sales forecast over the next five years, up 37% from £23.1bn in 2018 to £31.5bn in 2023.