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LEEDS, United Kingdom -- In a telling sign that online grocery shopping is proving profitable in the United Kingdom, Wal-Mart-owned Asda here plans to double the size of its home shopping service this year. The move is also likely a competitive response to Asda's chief rival, Tesco, which continues to expand its successful online retailing operation. Asda is the U.K.'s number two grocer behind Tesco.
Asda said 60 percent of Britain will be covered by is e-commerce site, asda.com, for home delivery service by September. Additionally, its online assortment has doubled in size, with 20,000 lines representing both food and non-food from which customers can choose.
Asda said it has invested more than 7 million GBP ($12.665 million) in its home delivery service in recent months. The retailer now picks orders from 53 stores.
Last week, Asda launched entertainment online, putting more than 140,000 CDs, DVDs, and games online at www.asda-entertainment.co.uk.