Despite Webvan's failure, the pufudits have proven to be wrong again. Online grocery is alive, wel growing rapidly, but with different aspirations and business models. Pundits did not count on Manhattan's Fresh Direct (and hundreds of other local niche online grocers) or the ability of traditional grocery chains to move into the ashes of the online grocery business to create solid, profitable businesses. These firms are learning how to exploit this potential market with profitable business models. t online players today are traditional firms such as California's huge Safeway Stores, The APSupermarket.com, and Shoprite com in the North East, and Royal Ahold utch owner of the U.S. Stop & Shop and Giant food stores, among others, and the Internet firm Peapod.com). Big-box discount stores such as Costco, BJ's, and Sam's Club also offer online grocery services. Sam's Club, the Wal-Martowned big box chain of stores, offers customers a "Click N' Pick" service: order online, pick it up at the nearest Sam's Club store, and you won't even have to stand in line to pay for your groceries. These firms are leveraging their existin nationwide distribution and supply chain systems, as well as their thousands of local stores, to provide shoppers with the opportunity of selecting what they want online, and then picking it up at the local stores or havin it delivered by the local stores. These us. firms followed the lead of the successful British grocer Tesco. Tesco is the largest chain of supermarkets in Britain and opened an online division in 1 It is considered to be the largest and most