The Minister for Economic Development, David O'Byrne, today launched the Hill Street Grocer's new online store.

The small business has partnered with the new local company, Myfoodlink, to develop a complete online supermarket and home delivery service.

As online shopping becomes increasingly popular, the innovative move will help Hill Street compete with big supermarket retailers, and attract online shoppers to buy local produce.

"The times are changing when it comes to Tasmanian's shopping habits," Mr O'Byrne said.

"It's fantastic to see a dynamic business like the Hill Street Grocer using new technology to innovate and embrace that change.

"Through State Government programs like Digital Ready and Business Tasmania Online, we're helping local businesses take advantage of digital technology to find new markets and create jobs.

"Hill Street Grocer has wisely embraced this opportunity, and given itself a great platform for growth and prosperity," he said.

Mr O'Byrne said the Tasmanian Government's Economic Development Plan is about supporting businesses to innovate and capitalise on Tasmania's natural strengths -including new digital technology.

"We're a small, export-based economy, so Tasmanian business has to be innovative and play to its strengths," Mr O'Byrne said.

"Last month, I was at Uniform City, which has invested in new technology to produce more clothing locally and support Tasmanian jobs. Today - it's Hill Street embracing technology to modernise and reach more customers.

"You can see the trend developing. When we talk about having a plan for a diverse, innovative and modern economy, this is what we mean.

"It's very encouraging to see our work with Tasmanian business starting to pay-off, and produce results," he said.

Under Hill Street's new online system, the grocer will pack and deliver its produce to customers. Myfoodlink has provided the E-commerce technology to set up the online store.

Hill Street staff will pack orders from normal shop stock - meaning the business won't need a large and costly packaging centre like major retailers have. As a small business with large volumes across three stores, they'll be able to keep prices competitive online.

Tasmania's 36,000 or so small businesses employ about 106,000 people. The Tasmanian Government supports them with many programs and services.

Key parts of the Small Business Strategy, released last year, include:

• Business Tasmania Online - providing online training modules, interactive toolkits, and market intelligence, to help businesses find new markets.
• The Digital Ready Program - helping businesses use new digital technology and online channels to grow their markets and reach new ones.