Web Store upsets channel

Ian Jones, part owner of storage distributor CD Revolution, has set up internet firm Web Store, but the company has denied that the move would cre- ate any channel conflict.

CD Revolution confirmed that Web Store had begun trading this week and had advertised in PC World?s May issue selling Yamaha and Philips CD-Recorders ? the same kit that CD Revolution sells.

One source said: ?The Web-Store office is about a minute down the road from the distribution business, and guess what sign it has in the window? CD Revolution.?

But CD Revolution denied it was competing with its dealers, claiming that the two companies were completely separate.

David Nuttall, a director of CD Revolution, said: ?This is nothing to do with our management. There is common shareholding with Ian Jones, our marketing director, and we?ve backed it from a technology point of view, but CD Revolution sells only to dealers.

?This isn?t a spin-off, it?s a separate business.?

Nuttall confirmed that CD Revolution was a supplier, but said ?so is any other distributor?. He cited Hewlett Packard as a Web Store product that CD Revolution did not distribute.

Another channel source said: ?It sells the same products and uses the same style of advertising ? this sort of thing comes back to bite you in the end. No one can develop their distribution channel to the maximum if thay are supplying users as well.?

Jones was unavailable for comment at press time.