Online grocer FreshDirect Inc. is slowly but surely expanding its geographical base and making a bigger play for the broader New York City area. For most of its time as a web grocer, FreshDirect has remained a city kid and focused on growing its market share in Manhattan and in the surrounding boroughs.
But in 2005 FreshDirect, No. 62 in the Internet Retailer Top 400 Guide to Retail Web Sites, began making deliveries to certain parts of New Jersey such as Jersey City. Now the company is eyeing other distribution routes in New Jersey, Long Island and Westchester County, says FreshDirect president Steve Michaelson. “All of these areas are good nominees,” he says.
FreshDirect operates on a delivery and supply chain model that emphasizes working with mostly local and regional suppliers. In 2006, FreshDirect will continue to expand its corporate services, which includes catering and food delivery service for companies in mid-town New York. The company also is expanding its menu.
The latest addition is a new collection of ready-to-eat meals based on fresh ingredients and a specific menu, such as meals with no more than 500 calories for diners on a diet. “We are continuing to find new ways that add value to the supply chain,” says Michaelson. In 2005, web sales at FreshDirect totaled $150 million, an increase of 25% from e-commerce sales of $120 million in 2004.
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