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In 1995, Sainsbury came out with new method of shopping, Wine-Direct' by mail ordering system. They promoted new online service in competence with Tesco on the announcement of Tesco's first online wine service (Sainsbury Annual report plc, 1995). Expansion of online shopping from seven stores by end of 1997 resulted in additional advantages for customer in terms of shopping list and home delivery. The service expanded to another 30 stores by the end of 1998.

Sainsbury's e-commerce was designed to provide adequate information for the customers to enhance their shopping experience. The e-commerce designed as an integrated part of retail service rather than as simple separate business channel. According to Sainsbury's CEO Dino Adriano, Sainsbury's e-business strategy will act as a pillar for future company's business growth. The portal will be designed and developed to provide complete information about categories, online-shopping benefits and offers, interacting information and transaction details (Sainsbury Annual report plc, 1999).

In 2000, Sainsbury initiates series of e-commerce activities. These activities are mainly focused on business to business and business to customer solutions for various reasons such as b2b cost reduction, improving availability of product and stream lining of internal systems, high level automated warehouse picking systems (in expectation of joint venture with Carlton TV for online shopping at M25 area) and website re-launching etc.

According to CEO, these types of initiative activities create new value. Company's E-commerce is an integral part and it provides various offers as a part. Company will design its all aspects innovatively to create new value. Dino Adriano also addressed that, they have learnt a lot from their R&D department about operational principle and home shopping methods and its economic implementations. CEO quoted as store based system is not feasible or adequate to deal with significant volume of orders without compromising quality of service for in-store customers. And also he mentioned that, it is not suitable nor sustainable one for long-term. Sainsbury designed new system called picking centre' for first time to compete its main rival Tesco (where Tesco adopted in-store picking system for home delivery system) (Sainsbury Annual report plc, 2000) without neglecting its offline service.

However by 2001, ware-house picking system and in-store picking system constituted fifty percent of national coverage in e-grocery system (Sainsbury Annual report plc, 2001). Sainsbury attained second position in e-grocery market with its 71% coverage. (Sainsbury Annual report plc, 2002).During 2004, expansions of e-grocery methods to more in-store picking system reduced considerable cost in logistics and order fulfilment. This became one of the important milestones in Sainsbury's e-commerce history.

In later stages further cost reduction activities took place such as complete shutdown of automated picking centre (Sainsbury Annual report plc, 2004). But during 2005, due to difficult financial situations online system本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。