Canadian grocer Loblaw will permanently close its five-year-old internet grocery business on Friday, 23 September.

The company cited price-conscious consumers and rising fuel costs as the reasons for abandoning Egrocer, announcing, "while the business has grown over the past five years we have learned that the majority of our customers are not willing to spend more to have their groceries delivered to their front door."

Launched in Toronto in 2000, Egrocer was one of many North American online grocery services that, while instrumental in improving transport and fulfilment, failed to realise true market success. The company will send $25 gift cards to its 3,500 registered customers.