Somerfield stops home deliveries
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II Troubled supermarket group Somerfield is to pull out of home shopping just months after its director hailed home deliveries as a market which would grow to £10-12bn a year
The home shopping division, 24-7, has suffered pitiful sales and heavy losses over recent months and ceased trading this week. Up to 226 employees at the company's three depots will be affected by the closure, Including around 45 drivers.
The move comes after 24-7 director Dominic ScottFlanagan told delegates at February's Freight Transport Association conference that one in 10 people would be shopping through the Internet or digital television within five to 10 years.
The Somerfield group has experienced difficulties since its merger with Kwik Save in 1998—at the end of last year it was forced to sell off 46 large out-of-town Somerfield stores. A spokesman says: "We have to focus on rebuilding and strengthening our core business before we continue investing In the home
shopping market. Everyone is playing with it [home shopping] at the moment but nobody is making any money out of it."
The 40 vehicles operated by 24-7 will be redeployed to stores which offer a traditional home delivery service. Somerfield says it will "try to find alternative positions" for affected staff.