Tesco takes Time to sell PCs

TESCO will this week start selling computers in its bigger stores in an attempt to make buying a PC 'as easy as buying a bag of sugar'. Britain's biggest supermarket chain has signed a deal with computer giant Time to sell its PCs, which will put it in direct competition with retailers such as Dixons.

Time, which has 130 stores of its own, hopes to boost sales by reaching Tesco's 14m customers.

Tesco has sold computers before, but only in one-off promotions. The long-term arrangement with Time will be launched on Wednesday in 100 Tesco stores and will eventually be extended to most others. PCs will also be sold through Tesco's online shopping service.

Ian Sinclair, Tesco's senior buying manager, said: 'There are still millions of people who want to own computers but who are intimidated by the technology. They would never dream of going into a specialised computer store because these seem to cater only for experts. Tesco will let them look at computers while doing their shopping. We're taking the mystery out of computers.'

Tesco is training staff to deal with first-time buyers. The company claims customers will be able to avoid 'hidden charges' levied by some companies, such as delivery costs, which can add £60 to the advertised cost. The deal also gives Tesco the chance to become a major supplier of computer accessories.

Other supermarkets may follow Tesco's lead. Asda used to sell computers but pulled out. But a spokesman said: 'We may return to computer retailing.'