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UK supermarket group Tesco has announced that is has achieved annual on-line grocery sales of over £500m (US$931m).

Tesco said it is the world’s largest online grocer, covering 96% of the UK and delivering over 110,000 orders a week.

The company said industry statistics show now receives more visitors to its site than the combined traffic of its on-line grocery competitors.

“The fact that we achieved as many sales this December (2003) as we did in the whole of 1998 shows is still growing at a phenomenal rate,” said chief executive Laura Wade-Gery.