Supermarkets have all previously restricted cut-price deals to online offers. Although Tesco has never offered VAT-free entertainment products in-store, Asda held a similar promotion three years ago.
Asda launched an attack on Tesco’s leading online position last week by doubling its nationwide coverage to 60% and creating an entertainment website with more than 140,000 cut-price CDs, DVDs and games, sold from a tax-haven in Jersey (The Grocer, May 28, p10).
Unlike the VAT-free deals offered by Tesco and Asda on the back of off-shore sourcing, Sainsbury is paying the VAT on shoppers’ behalf. The new Ocean’s Twelve DVD can be bought in-store or online from Sainsbury for £10.20 in the current promotion. It costs £11.99 in-store at Tesco, £10.79 online at Tesco Jersey, and £11.97 from Asda.