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.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- US food next wave on display at Winter Fancy Food
- Analysis: Chocolate sector's deforestation pledge
- Comment: Meal kits in US - don't believe the hype
- Kraft Heinz cuts jobs in US, Canada
- Mondelez set for union crosshairs next week
- Mondelez plays down impact of union action
- Brazil seeks to cool concerns over meat probe
- US meal delivery service Blue Apron buys BN Ranch