An independent retailer is making changes to compete against Tesco's new discounter chain store, Jack, that is due to open in the town.

Chatteris in Cambridgeshire is expected to be one of the launch locations for Jack’s – Tesco’s secret discounter chain. Local newsagent and Post Office owner Satish Karia told Retail Express: “It’s tough already in the town, we’ve got an Aldi nearby and one local convenience store has now closed and another looks like it might follow suite, so I know I’ve got to prepare for when this Tesco trial store launches.”

Instead of competing head-on with a fresh focused and low-priced convenience model, the retailer is looking for new revenue streams, and finding success in this small commuter town. “We’ve just added a dry-cleaning service and it’s been very successful,” he said.

Competition from an established bakery and another that is soon to open nearby reduces the opportunity from hot food to go, so he is looking elsewhere for a long-term strategy. Karia told Retail Express: “I want to develop a combined party store and convenience store with unique food to go elements like an ice cream machine and a renewed focus on soft drinks and impulse.”

Explaining the strategy, he added: “It’s focused on winning impulse custom from the local schools, expanding our catchment area and making more of each basket high margin items that can’t be found elsewhere.”

Read more: EXCLUSIVE: Inside Tesco's secret discount chain store – Jack's