Tesco plans to launch a new own-brand clothing website to take on internet fashion retailers such as Asos. The supermarket chain said that the site will sell thousands of items and could be operating in time to stock this autumn's ranges.

The Tesco Direct website stocks only a limited number of its own-brand lines and only the biggest 200 stores carry the ranges. The new site, which will sell only Tesco's own-brand lines such as Florence & Fred, Cherokee, Elspeth Gibson and Connie Fisher's My Favourite Things, will carry many more.

The move is seen in the industry as a response to the runaway success of sites such as Asos, which have proved to be largely immune to the economic downturn. Clothing sales online were worth £1.3 billion in 2007, accounting for only 4 per cent of total clothing sales in the UK, but this is predicted to more than treble by 2012 to £6 billion, accounting for 13 per cent of the market.

Asos, previously known as As Seen On Screen, has reported a rise in sales of 108 per cent in the past nine months and claimed that about 1.2 million people had bought from the site in the past six months. If anything, that improved in the Christmas period and the company is now Britain's second-biggest online clothing retailer after Next.

Richard Brasher, commercial director of Tesco, said that the move followed a successful trial last year.He said that the Tesco clothing team would be working with existing suppliers, many of whom have been partners with the supermarket for at least five years, but would also cultivate new relationships as the site developed. However, news of the launch will raise speculation about the position of Terry Green, Tesco's head of clothing and former chief executive of Allders.

Richard Jones, who launched Sainsbury's push into clothing, joins Tesco this summer and is viewed by the industry as being more attuned to Tesco's methods than Mr Green.

Tesco is regarded as having been far slower into online clothing than many of its competitors. Asda started selling its George lines online last year — while more than £1 in every £6 worth of sales at Next now comes from the internet. John Lewis and Marks & Spencer are also investing aggressively in online clothing.

Greg Lawless, analyst at Blue Oar Securities, the broker, said: “Both Asos and Next are better at selling clothes online.”

Tesco's trial ran until March last year but was dropped amid speculation that it had not met internal forecasts. The site, www.clothingattesco.com, is still running, but it allows customers only to browse through the ranges and not buy.

Meanwhile, it has emerged that Fresh & Easy, Tesco's American operation, has launched a range of products priced at 98c (69p) in response to the squeeze on consumer spending there. It is selling 98c packs of fresh produce, including oranges, carrots and peppers, aiming to give shoppers fresh produce on a budget. It plans to rotate the products, depending on the season and their availability.

Simon Uwins, Fresh & Easy chief marketing officer, said: “It's clear customers are trying to stretch budgets but they also tell us they don't want to compromise on quality or freshness.”

Fresh & Easy has also started to communicate with its customers through Twitter, the much talked-about micro-blogging site, to update them on offers.

— Amazon UK is expected to emulate its US online grocery delivery service, offering more than 45,000 nonperishable food items. A launch date has yet to be decided, according to Retail Week, the industry trade magazine. The move would pitch Amazon against established services such as Tesco.com, Sainsburys.com and Ocado.com, which delivers Waitrose food. In the US, Amazon offers bulk-buy discounts. Amazon is best known for selling DVDs and books in the UK.

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