Peapod, Giant try to win DC

Internet grocer Peapod and Giant Food Inc., a leading supermarket chain in the mid-Atlantic region, have launched Peapod by Giant online shopping and delivery service in the Washington, D.C. area. Deliveries begin on Tuesday, Nov. 7. This is the second market expansion for Peapod since Royal Ahold acquired a majority stake in the company in the second quarter of 2000. Peapod is working closely with Royal Ahold's supermarket brands to expand along the East Coast, and in June started service in Southern Connecticut. A supply and services agreement between Peapod and Ahold provides Peapod with enhanced purchasing power. Peapod by Giant grocery orders will be picked, packed and delivered from a centralized fulfillment center in Gaithersburg, Md. In September, Peapod purchased the operating assets of Streamline.com Inc. in the Washington, D.C., market, acquiring the Gaithersburg facility, an established customer base and existing workforce and management.