Retail news round-up on October 15, 2014: Tesco scandal causes buyer uncertainty, eBay lowers sales forecasts, John Lewis seeks virtual reality tech and more.
Tesco accounting scandal creates uncertainty among buyers
The £250m accounting scandal surrounding Tesco has left the supermarket unable to operate its commercial operations properly and has created uncertainty among its buyers, according to suppliers. According to a senior source at one of the supermarket’s largest suppliers Tesco lacks leadership and those in charge don’t know much about the retailer.
Amazon ties-up with Frontier Developments
Amazon has tied-up with Frontier Developments to create a game for the Kindle Fire. The game, Tales from Deep Space, will be released exclusively on the Kindle Fire however; its launch date is yet to be confirmed. Tales from Deep Space is new IP that was created at Frontier as part of the game of the week incubation process, reports the Telegraph.
EBay forecast revenue of less than £11.2bn
EBay has forecast revenue of less than $18bn (£11.2bn) for the year. The online retailer previously expected sales of as much as $18.3bn. Sales for the three months ending 30 September increased 12% to $4.4bn, compared to the same period in 2013. The retailer is planning to split off its payments system PayPal into a separate company.
John Lewis seeking for virtual reality technologies
John Lewis is showing interest at virtual reality technologies such as Oculus Rift which could bring change in the in-store experience, according to The Drum.
The retailer has started investigating the area predicting that the virtual reality and the in-store experience will collide. The technology could be used in a situation where an in-store customer shopping within the furniture department can use the headset in order to visualise how it might look in their living room. The retailer will speed up its efforts on the My John Lewis loyalty scheme, which recently restricted the free tea and cake perk for members in the run up to Christmas.
Tesco’s Blinkbox launches ‘fresh from cinema’ brand campaign
Tesco-owned Blinkbox is ramping up to unveil a major branding campaign to promote its place as provider of “fresh from cinema” movie releases. The campaign, which will be launched on 22 October will include 30-second TV spots featuring a voiceover stating that ‘the following movie has been rated fresh from cinema,’ before showcasing the latest titles on the service. The retailer has joined forces with four Sony Pictures, Warner Brothers, NBC Universal and 20th Century Fox to provide the ultraviolet functionality, which will open up the ability for Blinkbox customers to instantly stream or download movies for viewing on multiple devices, once they have bought the physical discs which feature the redemption code.
House of Fraser launches locally-focused campaigns
House of Fraser has revealed the launch of its locally-focused campaigns to celebrate the re-opening of the retailer’s Jolly’s store in Bath and the launch of new outlet in Cambridge, The Drum reported. The local promotional drive features 24 print ads in the style of ‘Missing’ posters. The ads feature shoes, from brands including Linea, LK Bennet and Kurt Geiger, hidden in locations around Cambridge. The Bath work will run in local and national press, on 6-sheets and bus sides this month, reappearing at Christmas.