Peapod, LLC

  • Overview

Too busy making dough to shop for bread? Peapod offers online grocery shopping in about two dozen metro, suburban, and community markets in 12 states. Its territory includes Baltimore, Boston, Chicago, Connecticut, suburban New York City, Manhattan, Milwaukee, and Washington, DC. Customers pay delivery fees (up to $9.95 based on the order's size); there are no membership fees. Peapod's virtual aisles are stocked with 12,000-plus products including natural and organic fare, office and school supplies, videos, pet items, and prepared foods. Peapod is the online shopping and in-store pickup or delivery service for Giant Landover, Giant Carlisle, and Stop & Shop supermarkets, chains owned by Ahold USA.

Geographic Reach

Illinois-based Peapod serves customers in 24 markets across a dozen states including Connecticut, Illinois (the Greater Chicago area), Indiana, Maryland (Baltimore), Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Virginia, Wisconsin, as well as the District of Columbia.

Financial Performance

While Ahold doesn't breakout Peapod's sales, it reported that Peapod in 2012 continued to deliver double-digit sales growth in its existing market area.

Strategy

Now that high-speed Internet service is available virtually everywhere in America, Peapod's customer base has picked up steam to include more than 350,000 customers annually. The average 60-item Peapod order rings up about $155. Peapod is expanding its geographic reach and adding alternatives to home delivery. The online grocery shopping service entered the market served by Giant Carlisle (expanding its reach in Maryland, Pennsylvania, and northern Virginia) in 2012. It is also adding in-store pickup for online orders at Giant and Stop & Shop stores in nine states and the District of Columbia.

While Peapod has operations in a dozen states, the online peddler of groceries is going after a territory that rival Fresh Direct has called its own for almost a decade. Peapod entered the Manhattan home-delivery market in 2011; eventually it will be supported by some 20 trucks that will transport groceries to Manhattan from a Stop & Shop store in Mount Vernon, N.Y. Alongside Fresh Direct and Peapod, Manhattanites have access to corner bodegas and Whole Foods markets for delivery of fresh foods.

While not an immediate threat to Peapod's operations along the East Coast and in the Midwest, Internet giant Amazon.com has begun testing its own online grocery ordering and delivery service, AmazonFresh, in Seattle. It's looking to expand the service to other West Coast markets and, given Amazon's vast resources and ambition, it may someday become a direct competitor of Peapod.

Not relying solely on home clients, Peapod has catered to a niche delivery segment since 2007 to lessen its reliance on residents. To this end, it opened a facility in the Boston area devoted to businesses, non-profit organizations, and schools.

Ownership

Peapod is a wholly-owned subsidiary of Dutch grocery operator Royal Ahold, and part of its Ahold USA business.

Company Background

Founded by brothers Andrew (president) and Thomas (CTO) Parkinson in 1989, Peapod is one of the few survivors of the once-crowded online grocery-delivery market.

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Peapod, LLC


9933 Woods Dr
Skokie, IL 60077-1049
Phone: 1 (847) 583-9400
www.peapod.com

STATS


  • Employer Type: Subsidiary
  • SVP and CIO: John Burchard
  • President and GM: Andrew Parkinson
  • SVP and CTO: Thomas Parkinson

Major Office Locations

  • Skokie, IL

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