Money News
ASDA, the supermarket group owned by pile 'em high, sell 'em cheap US retailing giant, Wal Mart, is to boost its online home shopping service as it strives to provide 60% coverage across the UK by the end of the year.
The initiative, which comes after the firm announced £100 million of price cuts last month, is intended to provide stiff competition for deadly rival, Tesco.
Despite having recently invested a relatively modest £7 million in the operation the food retailer has put over 140,000 CDs, DVDs and games online at www.asda.com, with a simple promise - 'If it's available in the UK we've got it!' And with the service run from Jersey, anything sold under £18 comes tax-free, making the CDs/DVDs/games cheaper than in-store prices.
Whilst charging £9.77 for a typical chart album now, expectations are that this will fall to £8.97 over the next few days. Meanwhile, customers can pre-order items due to be released in the coming weeks, such as a DVD of 'The Aviator' starring Leonardo DiCaprio, which will be available at £13.97 ahead of its June 13th release.
Internet shopping continues to grow strongly - latest figures showing a 27% increase in 2004 to over £6 billion. Or 2.4% of the retail market. Music, video and games are the most established online categories with 2004 sales in excess of £500 million - one in ten of all entertainment bought online.
And by 2009 the internet's market share is predicted it be in excess of £1.3 billion with one in five purchases made online.
31 May 2005 © Moneyextra.com
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