The UK's numbers one and two retailers Tesco and Asda are embroiled in a fierce battle to take customers away from each other's stores in the Humberside city of Kingston Upon Hull.

Tesco has launched an aggressive marketing campaign that offers its customers £10 off their shopping if they spend just £30 in the chain's Hull store. The one-third off offer is a direct response to the pricing strategy of Asda in the town.

Meanwhile, Tesco has pledged to pump millions of pounds into its internet shopping operations in London, particulary in the buidling of an automated warehouse, which will be primarily dedicated to enhancing the chain's online offer.

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