INTERNATIONAL RETAIL CONTROVERSY : Supermarket J Sainsbury will take its spat over price comparisons with Tesco to Britains high court, challenging a ruling by the advertising watchdog in favour of its rival. Britains supermarkets are battling intensely for market share in tough economic conditions. Advertising is a major battleground. Earlier this year, Sainsburys complained to the Advertising Standards Authority (ASA) over market leader Tescos Price Promise scheme. The scheme compares the cost of a basket of Tescos branded, own-label and fresh food against what it regarded as the same or equivalent products from Sainsburys and other main rivals. Sainsburys argued it was unfair to compare own-brand items on price alone and not take account of provenance and other ethical issues. It said it was wrong for Tesco to match products such as its Everyday Value ham, which is produced somewhere in the European Union, with Sainsburs basics ham, which is British. In July the regulator sided with Tesco. Sainsburys appealed, but this month the ASAs independent reviewer Hayden Philips also ruled in Tescos favour. Sainsburys, battling to be the UKs No. 2 grocer with Wal-Marts Asda in terms of sales, is now taking the case to a judicial review at the high court and expects a hearing in the summer of 2014, when it will present several hundred examples of what it regards as unfair product comparisons. SCANDAL Coupe said the firm particularly took issue with Tescos assertion that for value-conscious customers ethical considerations do not play a part in purchasing decisions. This is incomprehensible because of Tescos position on horsemeat, where they through their advertising have said publicly that sourcing credentials are important and yet through their price comparisons decided that its less important or not important, he said. Unlike Tesco and Asda, Sainsburys was not implicated in a scandal over foods found to contain horsemeat when they were labelled as containing other meats. Tesco dismissed Sainsburys latest legal move. Sainsburys argument against Price Promise has been heard and rejected twice already, said Tescos UK marketing director David Wood. He said Tescos scheme offered customers reassurance on the price of their whole shop, in store and online, not just on the big-brand products. When family budgets are under pressure, that is the kind of help customers want and the real question for Sainsburys is why they arent trying to do the same for their customers? Tesco launched Price Promise in March, comparing its prices with prices from Sainsburys, Asda and No. 4 grocer Morrisons. If the comparison shows the basket would have been cheaper at a competitor, Tesco automatically issues a coupon for the difference up to 10 pounds ($16.13) when customers receive their shopping receipts. Sainsburys Brand Match scheme compares the prices of branded products only. The advertising spat is the latest in a long list of disputes between the two grocers. Though Tesco overtook Sainsburys as Britains No. 1 retailer in 1995, Sainsburys has performed better of late. Tesco issued its first profit warning in over 20 years in January 2012, while Sainsbury has posted 35 consecutive quarters of like-for-like sales growth.
Posted on: Thu, 31 Oct 2013 11:56:51 +0000
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