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Tesco to expand online
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January 19, 2000: 11:03 a.m. ET
U.K. supermarket chain to broaden its Web offering, add new services
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LONDON (CNNfn) - Tesco is to create 7,000 jobs by expanding its online shopping service across the United Kingdom, Britain's largest supermarket operator said Wednesday.
The Tesco Direct service will be offered at 300 of the firm's 750 U.K. stores, up from just 100 at the moment.
Tesco (TSCO) claims the title of the world's largest online grocer with 250,000 registered customers and annualized revenue of 125 million pounds ($205 million).
"The existing Internet home shopping service is already making money and we expect it to grow," said chief executive Terry Leahy.
Home shopping offers the potential for U.K. supermarkets to shore up profit margins that have come under pressure from a fierce price-cutting war.
Tesco is not alone in wishing to beef up its online service, with arch-rival J Sainsbury (SBRY) announcing a boost to its Net plans in November.
Competition is set to increase further as Wal-Mart (WMT), the world's largest retailer, exercises its influence over third-ranked chain Asda. The U.S. firm bought Asda for $10.8 billion last summer.
Rumors continue to swirl around the sector regarding further deals, with Tesco cast as either a predator - in a possible approach for beleaguered Marks & Spencer (MKS) - or as the target of a potential bid from overseas.
Hopes of a bid were behind the 4 percent rise in Tesco's stock price to 169 pence in London Wednesday. 
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Tesco
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