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Business News

Beauty brands put a wrinkle in Tesco's plans to rival Amazon

Tesco's plans for a website to rival Amazon's marketplace have hit problems as many beauty brands targeted for the site are reluctant to be linked to the Tesco name.

It is thought that Tesco, under chief executive Philip Clarke, right, has been working on the project over the past year but is still trying to secure fashion and beauty brands for the online marketplace.

The supermarket giant is targeting a launch by spring next year, and will sell branded items across all categories.

One source that has held talks with Tesco said beauty brands such as Clarins have been reluctant to sell their products through its site.

Tesco had hoped to launch the site to compete with the likes of Amazon and eBay to sell a wide range of brands and products without the need to take up physical space by stocking them in store.

Tesco's site will also offer a "click and collect" service – which will encourage shoppers to buy online and then pick up at a store – so encouraging them to spend more.

Separately, high-street catalogue store Argos is planning to increase its clothing range. It last year hired Emily Jacobs, who has previously worked at figleaves.com and TK Maxx, to work on developing clothing lines. Argos has been increasing its product categories and this year introduced books to its range.