Tesco.com is branching out into electrical goods, including PCs, TVs and vacuum cleaners.
Tesco’s online division will aim to undercut traditional white goods retailers Comet’s and Dixons’s online business, which means computer buyers should benefit from lower prices.
Grocery deliveries are proving a success for Tesco, with the company claiming to make £5m a week via its online storefront.
Selling white and brown goods is part of Tesco’s strategy to become an online hypermarket, and its size should put companies such as Comet and Dixons into a price war.
“The pricing can be quite keen as we don’t have [grocery] stores [selling electrical goods],” said John Browett, chief executive of Tesco.com.
When asked whether Tesco’s venture would force other retailers to reduce prices of PCs, Browett said: “Absolutely. I see the price of PC [and electrical] goods coming down in general.”
Very high land cost is a big problem for retailers, and Tesco has an edge over other electrical retailers because it only has a few hypermarket stores stocking white goods.
While Browett couldn’t say whether Tesco.com could undercut PC giants such as Gateway, he said the company could already beat Dell and Gateway on features.