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US online grocery sales pack new punch

The US online grocery business is in a revival that may finally see it emerge from the shadow of the spectacular bankruptcy of Webvan after its failed bid to launch a national home delivery service almost a decade ago.

Retailers, including Walmart, the largest US grocery seller, and Kmart, the discounter, are expanding or testing new online services built around an in-store, pick-up model being embraced by a new generation of web-literate households.

Online grocery home delivery remains a niche business in the US compared with Europe, with only a handful of regional businesses providing delivery, mostly in urban areas, including Safeway in California, Amazon Fresh in Seattle and Ahold’s Peapod along the US east coast.

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