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News Stories Thursday, May 9, 2002   
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Safeway.com doubles its geographic reach in San Francisco and Sacramento


Safeway.com, signing up new customers at the rate of 1,000 per day, is expanding its offering in the San Francisco and Sacramento areas. Since the service launched in those two markets in March, Safeway.com has doubled its geographic reach and is now serving 250 ZIP codes representing 2.6 million households, the company reports.

"We`ve discovered plenty of pent-up demand from people who tried and liked online grocery shopping in the past,” said Gary Rocheleau, president of GroceryWorks, which provides online grocery shopping and delivery for Safeway.”Shoppers continue to tell us they like the convenience.”

The service was introduced in Northern California on March 13 to 100 ZIP code areas in San Francisco, San Jose and Sacramento.

Safeway fulfills the orders from local stores and promises same-day delivery for orders placed by 10 a.m. Delivery costs $9.95 and there is no minimum order size. Customers can include special requests in their orders.

In Northern California, the average online order size at Safeway.com has been 52 items per delivery, with the largest delivery reaching 122 items. The busiest day of the week for Safeway.com deliveries is Friday, Monday is the second busiest and Wednesday is the slowest day.

GroceryWorks is 50% owned by Safeway and 35% by U.K. grocer Tesco PLC.

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