One of the advantages of being an international food services company with diverse business units is that different subsidiaries can often be leveraged to help develop a better competitive advantage. A case in point is Peapod Inc. and Stop & Shop Supermarket, which are both subsidiaries of Royal Ahold N.V.
Going forward, Peapod, No. 46 in the Internet Retailer Top 400 Guide to Retail Web Sites, will serve as the online web grocer arm of Stop & Shop in certain cities in New York and Connecticut. Specifically, Stop & Shop customers in the New York communities of Brewster, Carmel, Mahopac and Somers and in the Connecticut towns of New Milford, Brookfield, and New Fairfield will now be able to shop online and schedule grocery deliveries from Peapod.
New York City and the surrounding suburban and regional area represent one of the world’s largest and most competitive food service and delivery markets.
By utilizing Peapod’s online ordering system, order fulfillment technology and proprietary transportation routing system with Stop & Shop’s store base and customer lists, the combination helps build out Royal Ahold’s broader multi-channel strategy for a large food services and grocery market.
For instance, Stop & Shop shoppers who use Peapod can create personal lists, read nutrition information online, sort products rapidly by price or by nutrition criteria and use personalized online coupons. Stop & Shop cardholders can also jumpstart their first online shopping trip from a list of items they have bought at their local Stop & Shop simply by entering their customer card number. Groceries can be delivered as soon as the next day after the order is placed.
Peapod now has a presence in 15 markets, including the metropolitan areas of Chicago, Boston, Long Island and Washington, D.C., and communities in Illinois, Maryland, Massachusetts, Connecticut, New York, New Jersey, Virginia and Rhode Island.
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