MyWebGrocer bags $13 million equity investment

LOS ANGELES Aug 12 (Reuters) - MyWebGrocer Inc, a privately held provider of online shopping technology for regional grocers, said on Wednesday it received a $13 million infusion from private investment firm Stripes Group.

Colchester, Vermont-based MyWebGrocer also helps supermarket chains such as A&P GAP.N, ShopRite Supermarkets (VLGEA.O), Raleys, Food Lion (DELB.BR) and Harris Teeter provide customers with other online services, including recipes, weekly circulars, shopping lists, online coupons and advertising from consumer packaged goods companies.

Chief Executive Rich Tarrant told Reuters the company will use the cash infusion to enhance existing products, build out its advertising network and develop new technology to win new customers and fend off rivals.

Competition in the grocery segment has intensified during the current economic downturn as consumers work to save as much money as possible in a economic downturn that has sent unemployment to a nearly three decade high.

Large grocery sellers such as Wal-Mart Stores Inc (WMT.N) and Kroger Co (KR.N), which have a significant advantage because of their size, have put pressure on the segment by further cutting in-store prices already lower than the industry norm. [ID:nN12326481]

Separately, discounters such as Family Dollar Stores Inc (FDO.N), Dollar Tree Inc (DLTR.O), Dollar General Corp [DG.UL] and 99 Cents Only Stores NDN.N are adding to the pressure by adding more discounted packaged and fresh food to their offerings. [ID:nN29399572] (Reporting by Lisa Baertlein; editing by Andre Grenon)