The price war between Tesco and Ocado has taken a further step with the retail giant threatening to complain to the country’s advertising watchdog about its online rival’s latest ad campaign.
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The threat follows Ocado’s claim this week that it would match Tesco’s prices on “all household brands” in a programme that would see prices cut on 3,500 lines.
Ocado’s pledge is part of a wider plan attract thousands more customers to their online grocery store over the coming months, making them “accessible to millions of new customers”.
Today (14 March), Tesco hit back claiming that it is still cheaper on 2,500 products, with Ocado up to 65% more expensive on some products.
A Tesco spokesman said: “The issue really is that if you are going to claim something, you need to back it up and be more transparent with your customers. We do see Ocado as a competitor but no more than any other home delivery organisation.”
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By GlobalDataTim Steiner, chief executive of Ocado, told The Daily Telegraph they were confident they had matched over 4,000 items this week and will match as many Tesco prices as they can, changing their prices 52 times a year.
Officials at Ocado could not be reached for comment as just-food went to press.
