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POOR SALES FORCE CLOSURE OF SOMERFIELD ONLINE SHOPPING VENTURE

News, 19 June 2000


Another blip on the general upward curve charted by the online shopping sector came last Friday with the announcement by UK supermarket group Somerfield that it is to axe 24-7, its web-based shopping service launched only last September.

Somerfield, still reeling from its ill-starred acquisition of the Kwik Save chain in 1998, blames poor sales for its latest decision and ceases taking online orders as of today. Two hundred and twenty-six jobs at the group’s two fulfilment centres are at risk.

Says executive chairman John von Spreckelsen: “We may well have a fresh look at the role of e-commerce food retailing within Somerfield in the future, but the hard fact is that 24-7 has not been growing and represents a significant distraction to management at a time when its focus has to be on the core Somerfield and Kwik Save business. The decision has had no effect on our Somerfield Home Delivery service which we will extend into more of our stores."

News Source: CampaignLive (UK)