Season of goodwill delivers PC price war to high street

PC retailers have marshalled their forces in preparation for an all-out price war as the UK high street approaches the critical Christmas period.

Dixons, PC World and Tesco are among UK retailers that have announced dramatic sales programmes in the run-up to December, especially in the internet market where Tiny has joined up with BT to launch the Highway initiative.

Jeremy Davies, senior analyst at Context, said: 'Christmas is going to be a really bloody price war. While retailers such as Tiny are going for the jugular, this is the first year Tesco has been on the scene and it could have the capacity to make a dent in high street sales.'

Tiny and Burnley retailer Time Computers have both finalised their TV advertising campaigns and are boosting PC production. A representative for Tiny said: 'Last year we did really well and hurt Dixons' sales, but this year we're bigger and even more prepared.'

Tesco has been grey importing Sony consumer electronic products and slashing prices by up to 45 per cent. Davies said: 'If Tesco gets away with this, PCs will be grey imported in bulk next year. It is really taking on the high street.'

However, Dixons has finalised its strategy, including the introduction of its free ISP service and an entry level PC. The introduction of the Advent PC configurator to PC World stores will be completed by 16 November.

David Hamid, managing director of PC World, said it would allow customers to select which PC would suit them and could have it delivered within days: 'This is more than any other retailer can supply in ready-made machines.'