July 11 2007

Tesco in online price war with Argos?

Tesco currently stands at number 2 in the IMRG/Hitwise UK e-retailer rankings (behind Amazon) with Argos following in P3. A recent email arrived at IR Towers from Tesco and made me stop - Hundreds of products cheaper than Argos.

Tesco wants to strengthen its lead on Argos and price checking against competitors is standard buying department practice, so why not advertise the fact? Supermarkets have been advertising the price differences on food items for years now. Will Argos retaliate and are we set for a 'lot less bovver' war of words?

Kendra Banks, Marketing Director at Tesco.com and Tesco Direct will be speaking at the Internet Retailing conference in October, maybe she can enlighten us all then on the Tesco v Argos position.

Emma Herrod