Standalone online grocery retailers cannot hope to compete with bricks and mortar players with networks of stores to back up internet shopping ventures. So say analysts following the demise of Streamline.com, the latest US online grocer to throw in the towel after failing to secure sufficient funding. Said one analyst: "I don't think NetGrocer and co will be around in a year's time. "Online shopping is a low value, high cost operation at the best of times, especially in the US, where the basic logistical problems are much more expensive to overcome." George Wallace, retail analyst at consultancy Management Horizens Europe, said: "It's a case of consolidation or extinction for the pure players. Unless they team up with a bricks and mortar operation as we saw with Peapod [saved from ruin by Ahold in April], they'll go under. "There's serious money behind Webvan," he added, "It won't disappear overnight, but the traditional players have such a huge advantage." Streamline's demise comes just weeks after "name your price" online shopping service Priceline.com pulled the plug on its online grocery arm Webhouse after running out of cash. Last month, Streamline chairman Tim DeMello said the honeymoon was over for b2c internet start ups. "Clearly, it has now become apparent that companies in our industry must first prove unit centre profitability before proceeding with rapid rollout strategies," he said. But the lion's share of online grocery will not necessarily be won by Wal-Mart. The smart money is on discounter Target Stores, said Wallace. Target.com is now attracting more new visitors than Wal-Mart.com, which has been struggling to find the best format for its web site, explained Clive Vaughan at Retail Intelligence. Safeway and Kroger could also do well if they are able to offer a better fulfilment service, he added. {{NEWS }}