UK: Somerfield to axe home shopping via internet
Struggling supermarket chain Somerfield is pulling out of its online shopping business, with the loss of 226 jobs. Reasons cited include lack of growth the significant distraction to management at a time when its focus has to be on the core Somerfield and Kwik Save business.Another look at e-commerce food retailing at some stage in the future has not been ruled out providing the decision would have no impact on Somerfield's main home delivery service which is set to expand. Somerfield, which last month announced a 9.8% fall in fourth quarter sales, is understood to be losing up to £1m a month from the 24-7 home shopping division. It has been said that most of the country's larger food retailers offered home shopping services, but few were yet seeing any profits from them.The business will stop taking orders from Monday 19 June and will cease trading on 25 June. The fleet of delivery vans will be used to expand the group's home delivery service, which will be extended into more stores. Shares in the company rose slightly on the news which is expected to prompt a rethink among smaller retailers, who have been rushing to join the e-commerce revolution.
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