Tesco: “Give us the Opportunity to Compete on a Level Playing Field”

Tesco have thrown down the gauntlet again by restating their intent to match the likes of GAME and HMV as a games retailer, this time suggesting they are “better positioned than any other retailer” to add value to the videogames market.

The levithian of a retailer has recently expanded their reach to incorporate the videogames market on a larger scale – Tesco Entertainment director Rob Slater stated last year that Tesco wants 20% of the market by 2012 – by introducing a solid trade-in system and providing more stores with better videogame departments.

Sarah Kaye, Tesco’s senior buying manager, spoke to MCV to affirm their intentions to compete with pre-existing game retailers. She feels that Tesco should be given “the opportunity to compete on a level playing field” by expanding their entertainment section to establish themselves as a leading videogames retailer.

“GAME and HMV have hit a saturation point in a sense,” Kaye explained. “What more can they do? The future of this category is to create a new best in class rather than ripping off what other people have done.”

“For us it is about becoming a more credible retailer of games.” That’s quite a big statement, as it will take some effort to convince many that supermarkets should be their first port of call for videogame purchases. For that to happen, they need to rework their pricing structure, as they often go above the retail prices of their new-found competitors GAME and HMV.

Should they introduce more competitive pricing and continue with their stellar trade-in offer Tesco could very well engulf the videogaming market in the UK; it’s common knowledge that Game Group and HMV in recent months have been struggling, so the news that Tesco are stepping up their game is more cause for concern.