Groceries? Name Your Price

Online shopping is heading into supermarket aisles.

Priceline.com, the Internet service that allows customers to name their price for everything from airline tickets to home mortgages, is adding groceries to the list.

The company announced Tuesday it will launch WebHouse Club Nov. 1.

The service will let shoppers name the price they want to pay on more than 140 categories of grocery store items, including perishable products such as ice cream and meats, and nonperishable goods, such as snack foods, condiments, drinks, canned foods and pet supplies.

After ordering online, shoppers can pick up their purchases at participating stores.

The catch? WebHouse will charge shoppers' credit cards the moment the price is matched online, regardless of whether a shopper finds a cheaper brand at the store.

"There is no doubt that not everyone will go for this service because they might not get exactly what they want or won't want to be so committed," said Sara Zeilstra, an analyst at Warburg Dillon Read in New York.

"But I'm sure that there are plenty of people who are anxious to get any discounts they can and [who] are looking for great prices," Zeilstra said.

Demand is high for discounts on grocery products. According to a recent survey of 1,002 people by the Food Marketing Institute, more than 45 percent of shoppers use grocery coupons almost every time or fairly often when they go to the supermarket.

Many grocery stores already allow customers to download coupons from the Internet.

To enroll in WebHouse Club, customers must sign up for a membership card, which is then linked to one of their credit cards.

The Web site includes a directory of products and brand names. All items are national brands. No generic or store brands, milk or eggs are offered.

Shoppers must specify at least two brands they would agree to buy. They can either name their own price or choose one of the recommended discounted prices.

Within 60 seconds, a shopper will know if the price is matched. If it is, the price is immediately locked in and their credit card is charged. The accepted price then appears on a list that the shopper can print out and take to any participating supermarket.

At the store, the salesclerk swipes the WebHouse Club card and the transaction is completed. Any goods not on the WebHouse Club list must be purchased separately.

The Stamford, Conn.-based company plans to begin offering WebHouse Club in New York this fall. It plans to expand nationally next year.