Peapod plans to expand into New York City and other northeast markets
Peapod Inc., the Chicago-based Internet grocer with 2003 web sales of about $140 million, is expanding. Already in 13 regional markets, including Chicago, Boston, and Washington, DC, Peapod is expanding its service to include Providence and other parts of Rhode Island, effective April 13. The expansion gives Peapod, a wholly owned subsidiary of Royal Ahold, access to more than 515,000 households with Internet connections and the opportunity to market web-based grocery shopping to potential shoppers in Providence and about 10 other cities, the company says.
Peapod also expects to expand its business base in New York City. Today, the Internet grocer has a presence in Long Island, but is looking at other delivery areas in suburban New York City and its five boroughs. To generate interest, Peapod this summer will introduce a program called Chicago’s Best to New York. The program features famous Chicago food brands such as Carson’s Ribs, Lou Malnati’s pizza and Vienna Beef hot dogs. Shoppers can click on the Chicago shopping portal and order products from about 16 different companies.
The company is extending the Chicago’s Best program to New York because the two cities have similar food tastes, says Tony Stallone, Peapod vice president of merchandising. Similar locally famous food portals will be rolled out to other cities in the near future, including Boston. “Grouping these types of products together has been very successful for us from a merchandising standpoint,” Stallone says. “People relocate and move away, but they always have a fondness for their hometown food brands, which they can now shop for over the Internet.”
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