FreshDirect sees broader market horizons ahead

Though the company isn’t setting any timetable and for now will continue to concentrate on expanding customer service in its core market of New York and the surrounding metropolitan area, FreshDirect LLC eventually plans on taking its online grocery business national.

“We won’t just stay regional,” says FreshDirect chief marketing officer Steve Druckman. “It’s a matter of time.” FreshDirect, which expects its 2007 web sales to grow by about 20% to approximately $240 million, has spent the past five years building up an online grocery and fresh meals business model that makes optimal use of a local and regional supply chain.

In 2007 and again this year FreshDirect, No. 57 in the Internet Retailer Top 500 Guide, is concentrating on further building out the customer service side of the business. For example in March FreshDirect rolled out DeliveryPass, which lets customers receive unlimited deliveries for six months for a flat fee of $99 and have access to preferred delivery slots. Customers can reserve delivery slots a week ahead of time or a permanent slot. “A total of 20% of our customers are now using this service,” Druckman says. “We are working on ways to enhance customer loyalty.”

Other new customer service enhancements include unattended home delivery in Westchester.

Previously customers also had to be home in order to accept delivery of groceries or freshly prepared meals. Now, at the customers’ request, FreshDirect drivers will leave the orders packed in dry ice on the customer’s front porch if they are not home.

“Catering to busy families is our customer sweet spot,” Druckman says. “We are making these changes because they are requesting more delivery and service options.”