Tesco group chief executive Phil Clarke has signalled that the retailer’s non-food, non-fashion offer will focus on product for the home and garden rather than further experimentation with items such as gold and cars.

In a conference call with broker Bernstein Research, Clarke said: “We should focus on the things people use in their everyday lives, and I’d probably restrict it to those things that they use inside their home and garden, and used cars is probably at the very edge of the limit.”

He said gold exchange was “an interesting idea” but in future Tesco will focus on the home and garden.

Clarke’s comments dispel some commentators’ belief that Tesco will go into any and every non-food area.

When asked about the fight with rival Asda over the price guarantee, Clarke said: “Asda’s making a lot of noise about price, but when we do our analysis we don’t see it. Anybody can manufacture a basket that makes them look 10% cheaper.

“As long as your prices are good, customers will see the truth.”