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Tuesday, 22 January, 2002, 14:17 GMT
John Lewis to merge online interests
John Lewis Direct website
The John Lewis site "significantly beat" its sales targets
UK retail group John Lewis Partnership is to close down its Buy.com internet business, and merge the operations into its own website.

John Lewis bought the UK arm of Buy.com last year as it sought to expand its internet interests.

But the success of its own John Lewis Direct website has convinced the retailer to merge the operations under one brand.

Buy.com specialises in selling electronic goods and office supplies, and the business will be recycled into a technology shop within the John Lewis Direct website.

The move marks yet another move away from 'pure' internet retailing businesses towards those firms who have a well established High Street brand.

Bye-bye Buy

John Lewis Direct managing director Murray Hennessy said the division's success list its launch in October had been one of the reasons behind Buy.com's demise.

In the run-up to Christmas, the John Lewis site saw more than 1,000 orders per day, and "significantly beat" its sales targets, he told BBC News Online.

The shake-up, timetabled for March, would allow John Lewis to consolidate web sales under the familiar High Street name.

"The John Lewis name is a very strong brand and this (merger) enables us to capitalise on the strength of the brand," Mr Hennessy said.

He added that the move would also allow savings in the sites operations and marketing costs.

From March, visitors to Buy's UK site will automatically be redirected to the John Lewis Direct internet operation.

The John Lewis site will sell Buy's most popular products through its online technology shop, and also include electrical goods currently sold through the firm's department stores.

Pilot project

Last week the internet interests of the John Lewis Partnership developed further when internet food retailer Ocado - of which John Lewis owns a 40% stake - began piloting an internet grocery service.

The initial scheme is limited to the Hemel Hempstead area, but the company hopes to expand the service across London later this year.

Ocado will sell goods from the John Lewis-owned supermarket chain Waitrose, but will distribute the produce from a purpose-built warehouse.

See also:

17 Jan 02 | Business
John Lewis' internet adventure
08 Oct 01 | Business
John Lewis launches web shop
15 Jun 01 | Business
John Lewis goes on internet spree
08 Mar 01 | Business
Profits down at John Lewis
06 Feb 01 | Business
John Lewis snaps up buy.com
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