PEACHTREE ACQUIRES WAKEFERN'S WEB PARTNER

JON SPRINGER

ELIZABETH, N.J. -- The fledgling Web shopping business of the Wakefern Food Cooperative here was the gem of Peachtree Network's recent deal to purchase MyButler.com, Gregory Kalinin, Peachtree's chief executive officer, told SN.

Peachtree reached an agreement late last month to acquire MyButler for about $8.9 million, in a combination of Montreal-based turnkey Internet shopping providers. MyButler is in the pre-launch phase of an e-commerce platform for Wakefern, the retailer-owned cooperative of 200 ShopRite stores in the Northeast states.

Kalinin said the acquisition of MyButler, which also serves other independent grocers including Clark's Markets, Aspen, Colo., marks an important market-share grab in a competitive field.

While "pure-play" Internet grocers are consolidating and shrinking in number, the technology companies focused on partnering with independent grocers feel there's still plenty of growth ahead. Kalinin counts "five or six" companies emerging as major competitors in this field, including eGrocer, San Jose., Calif.; ShopEaze, Santa Clara, Calif.; MyWebGrocer, New York and the Grocery Shopping Network, Minneapolis.

Those companies offer small regional chains and independent grocers a turnkey Internet shopping option and make money generally through subscription and transaction fees.

"The companies with the best tools and expertise are going to win," Kalinin said. "MyButler not only does a lot for our market share but also has some great technology that's going to help our members become more efficient at picking and packing orders and in-store fulfillment."

Kalinin told SN that MyButler is currently testing Internet shopping with some Wakefern member stores in Staten Island, N.Y., and in New Jersey. Wakefern spokeswoman Karen Meleta said there was no firm date for a system-wide rollout and cautioned that the program is "still in the development stage."

Several Wakefern member companies offer such services as fax ordering and delivery, Meleta said. At least one Wakefern member, Wilmington, Del.-based Delaware Supermarkets, offered an on-line grocery shopping option.