Independent UK online grocer Ocado will this week set out its stall to match rival Tesco on price.

The company will launch Ocado's Price Match on Wednesday (12 March), a programme that will see prices cut on 3,500 lines.

Tim Steiner, Ocado chief executive said: "Ocado's Price Match, coupled with our delivery charges which are the lowest in the industry, will make us accessible to millions of new customers who will be able to enjoy the benefits of a superior service without being penalised on price."

Competition in the UK's booming online retail sector is heating up. Last week, just-food reported a jump in online retail sales of 54% in the UK last year, proving more consumers are choosing to ditch traditional shopping habits for convenience.

A total spend of GBP46.4bn (US$93.4bn) for 2007 means that GBP0.15 in every GBP1 spent in the UK retail sector is online, data from the IMRG Capgemini e-Retail Sales Index showed.