Stock shortage forces Fujitsu to pull out of Tesco deal

PC manufacturer Fujitsu has admitted that problems with inventory management forced it to pull out of a deal to supply supermarket chain Tesco with notebook computers.

Fujitsu's UK sales director, Frank O'Brien, told Silicon.com the deal had fallen through because Fujitsu would not have been able to supply both Tesco and its resellers. "We were in discussions with Tesco about supplying notebooks for a trial, but we realised we didn't have the inventory to supply Tesco in the run-up to Christmas and keep the channel happy," he said.

In July this year Tesco's New Malden store piloted a sale of 300 Fujitsu PCs for £800 each - 20 per cent cheaper than the equivalent price at any other store. O'Brien said his fears about channel inventory had been founded - just a week after launch the company had to double the number of PCs on its shelves.

Fujitsu planned to launch C325 notebooks from Tesco in the same way as the desktops. But a reseller source said Fujitsu pulled out due to a backlash from the reseller channel. "Fujitsu - like all the other big PC manufacturers - is caught between a rock and a hard place. It wants the volume of retail, but it's scared of the kickback from the dealers, and doesn't know which way to jump," the source claimed.

He added there would have been no margin for resellers in supplying the machines.

O'Brien said the deal was still under discussion and Tesco may start selling Fujitsu notebooks in January.