Tesco Cars – “No Price War”
It’s been a month since Tesco Cars opened up its virtual showroom. In the first month of operation the site attracted 500,000 visitors. Tesco Cars said that the virtual footfall to the site had converted to “strong sales” and it hit its first month’s target. Tesco Cars has not published its sales figures or targets.
The Tesco Cars website aims to sell cars online all around the UK including used cars in Kendal. The big fear for traditional car dealers and car supermarkets is that Tesco Cars has the backing to start a pricing war but, Sir Trevor Chinn said, “There are no plans to start a price war. Our pricing is comparative with competitive dealers, and some models will offer bigger savings than others, but we’re not here to start a pricing war. This is more about choice and experience.” This will come as relief to many dealer groups who are already struggling due to the current economic situation.
Sir Trevor Chin then added, “We have a unique opportunity thanks to the very loyal 16 million customers of the brand. That opportunity is not only recognised by our historic partners but the new ones joining us all the time. It has been a great no-risk option for selling used car stock direct to the consumer for the past five years as Carsite.co.uk, and that acceptability will only continue to grow.”
Tesco Cars is under no illusion and admits that the majority of used car buyers will still want to ‘kick the tyres’ and buy from a forecourt. But, the Tesco Cars website provides an alternative option for those happy to buy remotely.
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