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Tesco 1 Lewis 0

Informed sources tell this blog that Lewis Electrics is blaming Tesco for its decision to stop selling small electrical appliances.

Lewis Electrics (Lôn Parcwr) is soon to cease its range of batteries, bulbs and even toasters & kettles, owing to its near neighbour Tesco selling them cheaper. Presumably, profit margins on such items are slimmer than on white goods and consumer electronics.

We wondered about such matters when Tesco opened in July 2006.

Is this the first evidence in the town that Tesco is affecting the comparison as well as the convenience goods? This has implications for other comparison retailers, who will be watching the situation with concern.

When (rather than if) Tesco expands, there are surely implications for a range of other goods currently available at Lewis’. Tesco already sells DVD players (from £29.97), 19” LCD tvs from £139.97 to £249.97 and a 32” tv for £399.97. And, Tesco currently has 23 toasters for sale in its Tesco Direct catalogue, not to mention 28 *pages* of LCD tvs.

On sale in Tesco Rhuthun now (prices from Tesco’s catalogue but available in store) are:
  • Two-slice toaster from £3.75
  • Cordless kettle from £4.88
  • Steam iron from £4.14
  • Cylinder vacuum cleaner from £14.97
  • Hand blender from £3.96
  • Hand mixer from £3.96
  • Liquidiser from £9.47
Can anyone compete with these prices? Interesting how the price of these items continues to tumble at a time when basic groceries are accelerating at a faster pace than at any time in the last ten years.

And, so what if these gadgets go wrong one year after their warranty, they just perpetuate the throwaway society. The questions you need to ask before buying, though, are where were these products made, at what social cost, what’s the quality and how long will they last. We’d hazard a guess that the answers will not be that different to those in Lewis’.

Lewis Electrics closed its Well Street premises three years ago, moving its stock of small appliances to join white goods at its larger warehouse at Lôn Parcwr. Seven years before that, older readers may recall Lewis’ threatened to close in Well Street altogether, as a reaction to what it perceived was damaging roadworks. The worksd were aimed at improving the environment and ambience of Well Street—something that was actually very successful.

Why is it that Lewis’ didn’t move into the home computer market 10-15 years ago? And why didn’t it try for a slice of the lucrative mobile phone market? If Dixon’s and Curry’s can...

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