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12.7.2010 Amazon takes on grocery giants in UK

Amazon, the internet retailer, is set to challenge major grocery chains like Tesco in the UK, with the launch of an online store offering free delivery on over 20,000 food and beverage products.

The brands it plans to stock include Ariel washing powder, Carte Noire coffee, Pampers nappies and Walkers crisps, along with goods from firms like Nestle and Kraft, and fresh fruit and vegetables.

Initially, it will offer 22,000 lines, and the company - which can already rival Tesco's e-commerce portal on this measure - then plans to add a range of more niche and specialist goods in the future.

Tesco currently holds a 45.1% share of the web grocery sector in the UK, followed by Sainsbury's on 14.1% and Asda on 13.7%.

IGD estimates that online grocery sales reached £2.6bn ($3.9bn; €3.1bn) three years ago and will hit £7.2bn by 2014 as shoppers become more comfortable buying food in this way, and retailers enhance their capabilities.

At present, 13% of consumers make category purchases on the web, a figure that is expected to be jump to 40% over the next few years.

B.L. 12.7.2010