Posts tagged with "Peapod"

Peapod to shut down grocery delivery in the Midwest and cut 500 jobs

February 13, 2020

Peapod, the grocery delivery pioneer developed by Stop & Shop in 1989, has announced plans to cease operations in the Midwest—a move that will mean the loss of 500 jobs, according to a report by The Chicago Tribune.

Customers of the online grocer who live in Illinois, Wisconsin, and Indiana won’t be able to place delivery orders through the Peapod website starting as soon as February 18, the parent company of both the online grocer and its bricks-and-mortar originator, Netherlands-based Ahold Delhaize, announced Tuesday.

About 50,000 people in the Midwest currently use Peapod, placing 10,500 orders weekly.

Chicago-based Peapod will close a distribution center and food preparation facility in Lake Zurich, a pick-up point in Palatine; and distribution facilities in Chicago, Milwaukee and Indianapolis — affecting 400 employees. Another 30 employees will be cut at corporate headquarters in the West Loop, and about 100 drivers will lose their jobs.

Chicago will remain the headquarters for Peapod Digital Labs, which runs the e-commerce technology for Ahold Delhaize’s U.S. grocery brands. Peapod Digital Labs employs about 450 people, half of them in Chicago, and plans to hire 100 more people this year.

Peapod is exiting the Midwest as grocery delivery heats up, the Tribune says. The value of the online grocery market more than doubled from $12 billion in 2016 to $26 billion in 2018, and some projections have it reaching $100 billion by 2025.

Peapod will continue to serve customers on the East Coast, where Ahold Delhaize—the Dutch parent of Food Lion, Stop and Shop, and Giant—is the region’s largest grocery retailer. The decision to cut service in the Midwest will allow the company to focus on a strategy that offers in-store, delivery, and pick-up options.

“Customers really want groceries to be available for them whichever way they choose to shop,” JJ Fleeman, Chief ECommerce Officer and president of Peapod Digital Labs, explained to the news outlet.

Peapod’s Midwest operation posed challenges because it was online only, so it didn’t have a network of stores to connect to the supply chain and it was more difficult to gain new customers who want to know the grocery brand where their fresh food is coming from, said Selma Postma, president of Peapod.

“This was a very difficult decision given our rich history in Chicago,” Postma told the Tribune. “We have a lot of loyal customers, we have a lot of loyal employees.”

Peapod’s Midwest operations accounted for about $97 million of Ahold Delhaize’s $1.1 billion in online revenue in the United States.

 Research contact: @chicagotribune

Kroger and Nuro partner to pilot test autonomous grocery delivery

August 17, 2018

Watch out, Peapod and FreshDirect—and grocery delivery drivers nationwide. In June,  Kroger, which, with 2,800 food stores in 35 states, claims to be America’s largest supermarket retailer; and Nuro, which refers to itself as the “maker of the world’s first fully unmanned road vehicle,” announced a new partnership dedicated to offering same-day delivery of grocery orders placed through Kroger’s ClickList or Nuro’s app.

On August 16, the two companies announced the location for a pilot test of their new services, starting immediately in Scottsdale, Arizona. During the trial, the Kroger store, Fry’s Food, will fulfill orders placed on its site (frysfood.com) or via the Fry’s Food Stores mobile app. The price for the service will be a flat fee of $5.95, with no minimum order required. Grocery orders can be scheduled for same-day or next-day delivery by Nuro’s fleet of self-driving vehicles.

“Scottsdale is proud to be the home of Kroger and Nuro’s partnership,” said Scottsdale Mayor Jim Lane. “We welcome innovative technology that can benefit the lives of Scottsdale residents. We feel this partnership holds tremendous potential and promise; and offers our residents real, not-yet-experienced convenience for everyday routines.”

“We’re excited to launch our autonomous vehicle delivery pilot with Fry’s in Scottsdale,” said Kroger Chief Digital Officer Yael Cosset. “Kroger wants to bring more customers the convenience of affordable grocery delivery, and our pilot with Nuro will help us test and learn to understand customer acceptance of autonomous vehicles in our seamless offering. We thank Arizona Governor Doug Ducey, Scottsdale Mayor Jim Lane, and the Scottsdale community for being terrific partners and for supporting customer-focused innovation.”

“Arizona is home to some of the most innovative autonomous vehicle testing,” said Nuro Co-Founder Dave Ferguson. “We’re proud to contribute and turn our vision for local commerce into a real, accessible service that residents of Scottsdale can use immediately. Our goal is to save people time, while operating safely and learning how we can further improve the experience.”

Nuro will begin the pilot using its self-driving Toyota Prius fleet and will introduce its custom R1 driverless vehicle this fall. The unmanned delivery pods—about half the size of a Toyota Corolla—currently top out at about 25 miles per hour. Nuro has fitted Prius models in its fleet with its driverless software and sensors for the first Kroger pilot tests.

Dave Ferguson and co-founder Jiajun Zhu say they “have devoted their careers to robotics and machine learning”—most recently as Principal Engineers at Google’s self-driving car project (now Waymo). They founded Nuro in 2016 to harness the power of robotics and artificial intelligence to solve new challenges at a global scale.

“Unmanned delivery will be a game-changer for local commerce,” said Ferguson. “Our safe, reliable, and affordable service, combined with Kroger’s ubiquitous brand, is a powerful first step in our mission to accelerate the benefits of robotics for everyday life.”

Research contact: @KrogerNews

Shop local, grocery customers say

February 14, 2018

About two-thirds (64%) of shoppers are ”very/extremely satisfied” with their local supermarket, based on findings released from the third annual National Grocery Shoppers Survey. In fact, more than 80% of shoppers prefer their local store to an online/delivery alternative, such as Peapod or Hello Fresh.

Additionally, independent grocers are strongly associated with friendly employees, quality meats and produce, and easy-to-navigate layout.

The study was conducted among 3,000 U.S. adults by Nielsen on behalf of the National Grocers Association (NGA), the trade association representing the independent supermarket industry.  This year’s survey reflects consumer attitudes and behaviors from both The Harris Poll consumer panel and Nielsen’s panel-based Independent Grocer Shopping database, a new subset of the Nielsen Homescan panel, making this the largest and most developed view into today’s independent grocery shopper, the researchers said.

“There’s no doubt that the supermarket industry is rapidly changing, either because of the growth of e-commerce or the explosion of new formats, along with shifting consumer trends. However, independent grocers are nimble enough to quickly overcome obstacles and with strong ties to their communities, they know what consumers want and need,” said NGA President and CEO Peter Larkin.

Among the other key findings:

  • E-commerce insights: Even those who prefer to shop online do additional shopping in-store (68%), with the majority of their purchases (75%) done at the store. Convenience is the main reason for shopping online for groceries, while the need to see items and concerns about freshness are the biggest barriers to online shopping.
  • Health and Wellness: The majority of Independent shoppers (63%) expect their grocery stores to support them with a healthier lifestyle. The top recommendations included: Instructions on how to cook with certain foods (28%); help with label reading including ingredients and nutritional claims (25%); and general guidance on food that gives good nutritional value for the dollar (23%). Shoppers were almost split on where healthy foods should be displayed, with 58% saying that healthy food alternatives should be shelved alongside other food items, compared to 42% who think healthy food should be in its own section, separate from main aisles.
  • Areas that are valued most: Shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and offers of locally grown produce and other packaged goods. Almost 7 in 10 shoppers (67%) have no plans to switch from their independent stores.

Finally, you cannot poll shoppers and avoid complaints. Respondents said that independent supermarket operators need to improve their website usability, with consistent pricing online and offline, the same products online and in-store, and an easy-to-use smart phone app.

Research contact: communications@nationalgrocers.org