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Giant U.K. grocery store links with iVillage to create web site

Published on .

LONDON--Tesco, a leading U.K. grocery store chain, and iVillage, a New York-based women's online network, are partnering to create a Web site for the U.K. and Ireland.

Tesco.com, the chain's Internet unit, has committed around $18 million over three years in exchange for being the exclusive food retailer on the site.

Both companies will kick in $50 million for marketing and other expenses. Revenue from advertising and sponsorships will be split equally. The site is expected to launch by yearend.

The international move is a first for iVillage. Tesco.com offers books, CDs and baby products.

Copyright July 2000, Crain Communications Inc.

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