New jobs could be created at a Bradford warehouse as it taps into demand from customers on-line.

Britain's largest catalogue retailer Great Universal Stores has set up a new e-commerce division which will allow retailers and manufacturers to use its service to sell direct to customers as well as feeding demand for its own goods, the company announced today.

The new service will be branded Reality following the £35 million takeover of a web site design and e-business consultancy firm of the same name.

And it is hoped more workers will be added to the 70 who currently staff the firm's warehouse and distribution centre in Holme Lane, Bradford.

Andy Hill, managing director of Bradford's Redcat UK operation, formerly Empire, said the decision to set up Reality would not hit his firm's sales. "But they will face stiff competition from other people in the sector doing similar things.

"They are making the most of the spare capacity they have in their warehousing and distribution which makes good sense," he added.

Reality's services will include web design, customer management and call centre facilities for clients. Its aim is also to enable all of GUS' core businesses to become players on the worldwide web and strengthen sales and the group's customer base.

John Peace, chief executive at GUS, said: "When we launched our strategic review in January this year, one of our key priorities was to re-align GUS's assets to take advantage of new growth markets."

He said Reality would be able to offer facilities - including web design - for other companies GUS deals with. He added that the new division was already a substantial business and will immediately command a market leading position.

Pro forma sales for the new division for the year ending March 2000 are around £400 million and already has 50 external clients.

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