Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Thursday, May 16, 2002   
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Safeway.com entices customers with a discounted delivery fee

The competition for online grocery customers is heating up: Safeway.com is offering customers home delivery for $4.95 on weekends. The deal is half off Safeway.com's normal delivery fee of $9.95.

Safeway.com is available to San Francisco Bay Area customers in 200 ZIP codes and Sacramento customers in 55 ZIP codes. Delivery will be available from 10 a.m. to 9 p.m. on Saturdays and Sundays through June 30.

"We want more shoppers living in northern California to experience online grocery shopping and enjoy the convenience and benefits now," said Gary Rocheleau, president of GroceryWorks, Safeway's exclusive provider for online grocery shopping and delivery.

Safeway.com offers a "My Favorites" feature that takes recent in-store purchases made with a Safeway Club Card and loads them directly into the cardholder's online profile once the customer registers with Safeway.com. Safeway.com is operated by GroceryWorks, owned by Safeway and U.K. supermarket Tesco plc. Safeway fulfills orders from stores. It has no minimum order requirement.

Besides in San Francisco and Sacramento, Safeway.com operates in Portland, Ore., and Vancouver, Wash.

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