Online retailer Ocado has become involved in a row with Tesco over the latest advertising for Tesco.com.
Ocado is angered by a direct mail sent to thousands of customers that claimed that Ocado was 9% more expensive than Tesco’s service. Jason Gissing, Ocado’s finance director, said that Tesco’s claim was misleading. He explained: “If you consider the busiest time of the week for online orders, a Friday night, Ocado has free delivery for orders over £75. Tesco would charge £5.99.”
Gissing said Ocado would not be pursuing the matter further and claimed that the Tesco campaign was generating free publicity for its rival: “We are seeing record registration numbers in a period that is traditionally quiet. It feels like they are increasing Ocado awareness.”
A Tesco spokesman said the mailing did make it clear that Ocado offered free delivery for orders over £75, but he said that “Tesco is still overwhelmingly cheaper when measured over the 4,000 lines”.
Meanwhile, Tesco is attempting to strengthen its online service by allowing customers to use its Clubcard vouchers for online orders.