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.
The first two stores are set to open on Thursday in Chatteris, Cambridgeshire, and Immingham at formerly "mothballed" Tesco sites.
It will launch 10-15 Jack's stores in 2019. "Great tasting food at the lowest possible prices with 8 out of 10 products grown, reared or made in Britain". Articles appear on euronews.com for a limited time.
Discount retailers such as Aldi and Lidl are growing increasingly popular in the United Kingdom, and the German chains have a combined 13.1% market share of the UK's grocery market.
Some items did seem cheaper in Jack's: olives were 10p cheaper and Cherry Bakewell box 30p cheaper than in Tesco.
Chief executive Dave Lewis claimed that Jack's will be the cheapest on the market.
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They have cut prices and improved service, but analysts say that with sales at Aldi and Lidl growing at 10 percent each year it makes sense for Tesco to try to capture some of that growth.
The company confirmed that the stores to follow will include a mix of entirely new sites, sites adjacent to existing Tesco stores, and a small number of converted Tesco stores. Jack's will also be based around a UK-based own-brand approach.
Although unconfirmed, it is thought that Middlewich could be one of the locations now being eyed-up by the supermarket giant for its new brand, after July's announcement that it would be closing its larger superstore in the town.
Shoppers used to the ever-changing middle-aisles of Aldi and Lidi will feel at home in the new supermarket, with it's WIGIG ("when it's gone, it's gone") aisle of offers. The app also allows customers to track their total basket spend as they shop.
Matt Jeffers, managing director of Accenture Strategy, said: "We should expect to see more of the established players revisiting their store models, exploring mergers and acquisitions and building partnerships with competitors to head off intense competition and fight for customers".
The launch is an attempt to claw back market share from Aldi and Lidl, who have enjoyed a surge in popularity over the past five years. Jack Cohen founded Tesco 99 years ago in 1919.