Sony trials direct sale operation

Sony is testing the waters of selling direct with its first effort to target customers without its traditional retail channel.

The consumer electronics company will use a database of 20,000 names, compiled by a Pepsi promotion, to sell product direct. The deal will include a PlayStation, a copy of the Spice Girls game and a Spice Girls bag for #129.99.

But the move has caused concern among retailers who are worried that it could be a pilot scheme for Sony to test the viability of a multi-sales policy. The worries are being particularly heightened due to the operation being tested so close to the Christmas.

A Sony representative claimed: 'This is a one-off promotion to the Pepsi Spice Girls database. It is to target people who would not normally go out and buy a PlayStation.'

Nick Gibson, analyst at Dur-lacher Research, said: 'If it does go direct with cheap prices, it would seriously upset Virgin, Electronics Boutique and Game. The attraction is obvious though - cutting out the distributor and retailer means Sony can grab more of the margin.'

A member of the Centresoft PlayStation sales team was un-aware of the development.