Best Buy ad fires prices broadside at Currys

LONDON - Best Buy has opened an advertising war with Currys ahead of the opening of its first UK store tomorrow (30 April), with a national press ad advising consumers to 'demand' Currys' lowest price.

Best Buy: ad challenges Currys on price
Best Buy: ad challenges Currys on price

It is the first press ad Best Buy has run nationally, and uses the lower prices it will be offering on two TVs and a netbook at its Thurrock store, to accuse Currys of charging their customers different prices in different parts of the country. 

It gives prices on two TV models and on the Dell Mini Netbook, which it says cost more in Currys stores in London, Birmingham and Manchester, than in the Currys store in Thurrock. They are cheapest in the Best Buy store in Thurrock.

The ad starts with the headline: ‘Currys make some people pay more' and then goes on to state: ‘So, if you can't get to Best Buy, take this letter to Currys and demand their lowest price'.

There is then a cutout letter for consumers to take to Currys stores. The letter draws attention to a recent press campaign from Currys, which stated that consumers would be able to receive 10% of a selection of products, but only within the Currys store in Thurrock.

The slip then states: 'I realise you are unlikely to be able to match the Best Buy price, but I think it's only fair that you should offer the same prices at all your stores. So, I'm asking you today for the advertised 10% discount in the Currys store nearest to where I live.'

In response, a Curry's spokesman appeared to thank its new rival, saying it was aware of the ad, often ran local promotions, and would be delighted to see even more customers at its stores this weekend.

The skirmish between the two brands comes after Currys' sister company, Dixons, targeted upscale retailers John Lewis and Harrods with ads encouraging consumers to visit their stores to get a product demo, and then buy it online at Dixons.

Best Buy plans to open further stores in Hedge End (Southampton) and Merry Hill (West Midlands) in June, followed by Aintree near Liverpool in the following weeks. Best Buy has also confirmed that it will be opening a store in Croydon in the autumn.

The ad was created by CHI & Partners. Best Buy also works with direct and digital agency Wunderman in the UK.

Last week, it revealed plans to sell electric cars in its stores, in an area dedicated to "energy-saving and green-efficient technology", called GreenTech.

Matt Piner, senior retail analyst at Verdict, said: "Electricals is a homogenous sector and it's notoriously difficult for retailers to do anything truly different. Consequently, it's been grocers and online players, which compete extremely hard on price, which have enjoyed the most success over the past five years."

Piner expects that, although it is only opening a small number of stores to begin with, Best Buy will have an instant impact in the UK market.

He said: "The retailer will no doubt be looking to portray itself as the ‘green' electricals retailer – something that Currys and Comet have not really made a lot of."

Piner added: "After the hardship of the recession and the shift to value, consumer attention is slowly beginning to shift back to concerns about green issues."

The US retailer first partnered with Carphone Warehouse in 2006, allowing the UK business to bring its mobile phone expertise to the US market under the banner ‘Best Buy Mobile'.

Two years later, Best Buy acquired 50% of the Carphone Warehouse's US and European retail interests for £1.1bn, and created the joint venture, Best Buy Europe.

The new venture was designed to accelerate the development of Carphone Warehouse's retail proposition and to introduce Best Buy stores across Europe.

 

 

 

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