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Tesco sees e-commerce surge

But overall results aren't much to cheer about

Tesco, Britain's biggest supermarket, isn't doing bad in the online sales arena.

The company Monday reported its Web sales were up ten-fold over a year ago, though overall sales were lacklustre. After reporting 10 percent growth in the third quarter, compared to the same quarter a year ago, Tesco shares dropped about two percent to around 170-1/2 pence.

The company, like its competitors, is finding it rough going in an atmosphere of grocery price deflation. But Tesco has moved forward in online commerce with grocery delivery and in-store shopping terminals.

Consumer online spending in Britain trebled in 1999, according to a study by consultants Ernst & Young, with British households spending £695m on the Web.

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