The main players involved in internet grocery shopping are expected to pounce on the three picking centres being sold by Somerfield following its surprise decision to pull the plug on its 24-7 home shopping venture. The picking centres ­ two in London and one in Bristol ­ carry an £11m pricetag and would be useful additions to both Asda and Sainsbury's depot based home shopping strategies. Tesco, which has favoured a store picking system, has said it will not rule out the possibility of switching to warehouse fulfilment. None of the retailers would comment. Some analysts say founder Dominick Scott-Flanagan, who started 24-7 ­ formerly known as Flanagans ­ in south west London may be involved in a management buy out. Somerfield bought the business last March for £3.2m. The retailer denied rumours it would sell 24-7 in April, when ex-Somerfield financial director Martin Gatto was reinstated as the home shopping division's director after a bust-up with former chief executive David Simons. It said it would have 18 distribution centres and a full national roll out of internet and digital tv shopping by 2005. But recent reports say it was taking as few as 15 orders a week at its two newest depots in Bristol and north London ­ each designed to cope with 15,000 transactions ­ and is said to be haemorrhaging £1m each month. Somerfield said over 250 jobs would be affected, but refused to say whether Gatto would remain at the company. Analysts said the sale was "just a matter of time". Investec's David Stoddart said: "This is more an indictment of Somerfield's problems with its core stores business. "Without those bricks and mortar sales, how could it possibly expect 24-7 to flourish?" He dismissed the idea that a US operator would buy the business as a foothold in the UK, saying it was too small. {{NEWS }}

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