Tesco and Ocado clash over ad claims

Supermarket giants Tesco and Waitrose are set to clash over comparative advertising, with Tesco rubbishing claims that online grocery service Ocado can match its prices.

Tesco is expected to make a formal complaint to the Advertising Standards Authority today (Friday) about claims made by Ocado, Waitrose’s online delivery service, in press advertisements published in national newspapers earlier this week.

The Ocado advertisement claimed it would match Tesco’s prices on “all household brands”. But Tesco says it is still cheaper on 2,500 products and that Ocado is up to 65% more expensive on some products.

It was recently reported that total losses at Ocado reached almost £300m after an estimated £30m loss in 2007. Waitrose parent company John Lewis owns a 24.1% stake in the internet retailer.

Ocado made a £43m loss in 2006 according to the last accounts filed at Companies House. Sales rose by 53% to £230m in the year to December 3, 2006.

Recent reports suggest that Ocado’s founders – ex-Goldman Sachs bankers Jason Gissing, Jonathan Faiman and Tim Steiner – want a flotation as early as this year.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here