from Dan Munford, partner, Insight Research Sir; As your timely The Grocer 33 online survey hinted at last week (p29), the online opportunity still beckons, especially within the M25. Tesco has always been intelligent in its strategy, maintaining market position but always keeping a rein on costs. Others, notably Sainsbury and Asda, eventually decided to play according to the same rules with regard to store picking and van delivery capacity. One question you rightly raise is whether Ocado's ostensibly differentiated offer, promising better customer service will make an impact. The Greater London area has a lot of experience with online grocery shopping. A recent survey showed that as much as 25% of the M25 population has already experienced it. Since market growth overall is still relatively slow, the question, of course, is why the majority still don't like it. Perhaps the average Greater London online grocery shopper is prepared to pay a bit more in exchange for a better service for what is the ultimate convenience format. After all M&S appear to be proving this can be done with Simply Food. {{COMMENT & LETTERS }}

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