Asda launches non-food challenge to Tesco and Argos

Grocer Asda is launching is first ever non-food division called Asda Direct, firing another salvo in the aggressive high-street retailer price wars. It will be accompanied by the launch of a 600-page catalogue and website.

Asda Direct will offer more than 9,000 non-food products including homeware and electricals. The retailer already offers products online or by phone for home delivery. The latest launch is an attempt to seek profits outside the traditional market of food products.

Asda catalogues, with a three million print run, will put it in direct competition with multi-channel retailer Argos and its biggest rival Tesco.

Last month, Tesco cut the cost of 1,500 products in its latest Tesco Direct catalogue and sparked a fresh price assault on Argos. The reductions are on everything from hard drives to trampolines to skipping ropes.

Tesco is distributing six million copies of the catalogue in another attempt to win more business from high street rivals.

Argos, owned by Home Retail Group, recently launched its first “Home event catalogue” featuring 200 half-price offers. It was the first time that the retailer had produced a seasonal catalogue with a focus on value.

Argos is also offering four-year interest free credit on furniture

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