The group has ensured that Jack's will be a low cost model, in order to obtain the lowest possible prices, with the aim of providing 8 products 10 manufactured in the Uk.
Over the next six months Tesco will roll out 10-15 Jack's stores across the United Kingdom, with the first two opening on 20 September in Chatteris, Cambridgeshire and Immingham in Lincolnshire.
"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".
Chief executive Dave Lewis claimed that Jack's will be the cheapest on the market. The chain, named after Tesco founder Jack Cohen, will carry roughly 2,600 product lines, the vast majority of which will be Jack's own label.
He added that the move, which has been under discussion at the supermarket for more than two years, is in response to consumer desire for a "smaller, simpler range at shops".
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This news comes after reports that Lidl and Aldi have experienced successful trading recently with Tesco, Asda, Sainsbury's and Morrisons taking a hit because of the discounts on offer by both brands.
Some items did seem cheaper in Jack's: olives were 10p cheaper and Cherry Bakewell box 30p cheaper than in Tesco.
With its emphasis on a United Kingdom product base, Tesco has finally launched a response to the high street threat of European retailers Aldi and Lidl.
The new format opens in a Tesco "ghost store", which has lain empty since 2014 when the retailer halted expansion plans after a dive in profits and an accounting scandal. Jack's will also be based around a UK-based own-brand approach.
Unlike Tesco, Jack's will not have an online offering and customers will not be able to use their Tesco clubcard in the stores. The app also allows customers to track their total basket spend as they shop.
"Jack's not going to immediately begin the market shares of the competition, in any case, considering the number of openings announced today", emphasizes Fraser McKevitt, an analyst at Kantar, according to which the new sign is "clearly a bet on the long term". Jack Cohen founded Tesco 99 years ago in 1919.