Supermarkets pour millions into home shopping

UK supermarket chains, Sainsbury's and Asda, have made major commitments to home shopping.

Sainsbury's has said it will open a London-based home shopping depot costing up to £10m, while Asda is spending £20m on four warehouses in the London area.

Geoff Harbidge, pricipal consultant for retail at Cap Gemini, said: "This is great news - I've had enough of geeks and nerds saying UK retailers have missed the boat on ecommerce. The time is right for this channel and the big boys are moving in. But the Web and other channels of ecommerce, like the phone, are just one of many channels to market."

Harbidge added: "The Web has always been nice to the little players; this could be the end of such an atmosphere, unless they go back to their niche markets. Fulfilling orders via a depot rather than a store is far more efficient."

Sainsburys takes orders via its Web site, by fax or phone. Asda only accepts phone orders, but will open an online store next month. Asda charges £3.50 for delivery, with free delivery for orders over £150.