Launching Jack’s has made Tesco a follower when it should be a leader

The discount chain’s creation shows Tesco is focusing on rivals Aldi and Lidl – and forgetting the successful strategy adopted by former boss Sir Terry Leahy, writes Chris Blackhurst

Tesco launched new discount chain Jack’s in September this year (PA)

Fourteen years ago, I interviewed Sir Terry Leahy. The then Tesco boss had just collected the Management Today Most Admired Company and Most Admired Company Leader awards.

He was the king of retail, responsible for propelling Tesco to dominance. I asked Leahy what was the pivotal moment, when Tesco began to defeat the competition?

He said it was when employees were ordered to think only Tesco, they could no longer refer to something Sainsbury’s, the market leader, had done and how they could ape it. From now on, it was just Tesco. The policy led to the Tesco Clubcard, Tesco Metro and other innovations, and, after a while, to Tesco’s hegemony.