E-tailers boosted by online grocer success

NEWS The UK e-tail sector will continue to be buoyed by the increasing number of shoppers who buy their groceries online. Online grocery sales have reached £1.2bn and now account for about half of the total online retail market, according to a report out today by Verdict. In its report Electronic Shopping 2001, Verdict predicts that none of the online retail sectors will become particularly fragmented. The company says a very small number of companies in each sector will account for over 75 per cent of sales. Tesco.com is an impressive example of how popular online grocery sales have become. Last week the company scooped a prize for its e-commerce strategy at the @chievement 2001 Awards. But while the clicks and mortar giant continues to make waves, smaller start-up companies are feeling the pinch. US online grocer Webvan is hoping that a one-for-25 reverse stock split will prevent a Nasdaq de-listing. The struggling e-tailer has spent too many days at a value of less that $1 a share.