Tesco picks fight over homeware with Argos
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[August 11, 2006]

Tesco picks fight over homeware with Argos

(Evening Standard Via Thomson Dialog NewsEdge) TESCO is to go head-tohead with Argos by launching its own catalogue for homeware products.

Up to 20 million Tesco Direct homeware catalogues are expected to be distributed next month.

The move by Britain's biggest supermarket chain will be controversial since the retail giant has such a large share of British households' weekly spending.

It is not good news for Argos either. Argos and its sister chain Homebase are being spun off in the next few months, along with the successful consumer credit rating and information group Experian, by parent company GUS.

Tesco will send the catalogue to its 13 million Clubcard holders as well as hand them out at its stores.

A range of TVs and DVDs will be included in the catalogue offerings as part of a wide "home entertainment" offering, one source predicted.

Tesco toys and sports equipment ranging from bats and balls to bargainpriced kit will take Argos on at its home game of offering affordable sports for all the family.

A wider range of furniture that customers can already find in-store is another option being closely examined.

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