It's thought that Britain's biggest retailer is on the verge of launching its own discount chain.

The chain, named Jack's after Tesco founder Jack Cohen, will be in direct competition with Aldi and Lidl, as reported by Retail Gazette.

The first new store is set to be launched by Tesco chief executive Dave Lewis in Chatteris, Cambridgeshire next week.

Until now the launch has been kept a closely guarded secret, with staff and suppliers believed to have signed a non-disclosure agreement.

Tesco has been advertising for workers at new format stores in Cambridgeshire, Lincolnshire and Wandsworth. The ads for the new stores say that the business will be operated separately from Tesco's core business and the benefits offered to staff will be different to those offered by Tesco.

It is too early to say whether Jack's will be heading for Gloucestershire, but analysts predict a total of around 100 stores nationally, with around 60 of them Tesco Metro-style smaller supermarkets. Tesco Metros in St Helens and Edge Hill, Liverpool are expected to be among the first to make the switch to the Jack's brand.

What do you think? Do we need any more discount retailers? Can Tesco beat Aldi and Lidl at their own game? Email mark@moosemarketingandpr.co.uk