PEAPOD
Frequently Asked Questions (FAQs)
 
Q:
How does Peapod select products? How do they stay fresh?
A:
 

Peapod's proprietary Stay Fresh delivery system maintains products at their optimum temperatures, from the farm all the way to a customer's front door. Warehouses, trucks and delivery bins are all climate-controlled. Peapod also trains perishable selectors to prepare quality meats and pick superior produce. And customers can provide directions for some picks, such as yellow or green bananas and thin or thick-sliced deli meats.

 
Q:
  Wasn't Peapod a victim of the dot-com bust?
A:
 

Peapod started in 1989 and was not a "dot com baby." The business was grown slowly and wisely by leveraging partnerships with other established companies. In 2000, Peapod entered into a partnership with Royal Ahold, the international food provider based in The Netherlands. In mid-2001, when competitors like Webvan were going out of business, Royal Ahold purchased the remaining outstanding shares of Peapod, establishing the company as the leader in the online grocery space.

 
Q:
  What's changed since Peapod joined forces with Royal Ahold?
A:
 

Today, the Internet grocer serves more than 225,000 customers each year and has an owner in Royal Ahold, the international food retail and food service company from The Netherlands. The acquisition (which took place in 2001) has allowed Peapod to employ a more integrated bricks-and-clicks business strategy: expanding its partnerships with Ahold U.S.A. stores (Peapod by Stop & Shop and Peapod by Giant); leveraging the buying power of Ahold to make higher volume, lower-priced purchases; lowering distribution and transportation costs; and boosting inventory management to reduce out of stocks.

 
Q:
  What is Peapod's business model?
A:
 

Peapod operates under a centralized distribution model with two formats: warehouses and warerooms. Both provide next-day delivery, but warerooms, which are dedicated areas attached to Ahold U.S.A. stores, are used as business is developing in new markets and leveraging the stores infrastructures. Unlike Safeway and Albertson's, who operate under an "in-store pick" model, centralized distribution allows Peapod to design a shopping space that supports efficiency and accuracy in order fulfillment. Peapod also retains more control over inventory and logistics under this model.

 
Q:
  Who is Peapod's competition?
A:
 

Any non Ahold company that sells groceries, whether online or in store.

 
Q:
  What are Peapod's plans for expansion?
A:
 

In the near term, Peapod's focus is to expand market share on the East Coast in locations where Ahold U.S.A. has a significant presence with its Stop & Shop and Giant Food stores.

 
Q:
  What is Peapod's outlook on the Internet grocery industry?
A:
 

In the past this industry was overrated. But Peapod believes today, that the sector is underrated. President Andrew Parkinson says the increasing use of high-speed broadband, advances in portable technologies and the growing numbers of women in the online shopping ranks are mounting forces that will spur the industry to maturity.

 
Q:
  Can customers use manufacturer's coupons with Peapod?
A:
 

Customers can redeem valid manufacturer's coupons with Peapod drivers; the coupon is credited to a customer's account. Peapod also features hundreds of weekly specials online.

 
Q:
  Isn't Peapod affiliated with Jewel Food Stores?
A:
 

No longer. When it first launched in the Chicago area, Peapod established a relationship with Jewel Food Stores to fulfill customer orders. But in 2000, when the company became a wholly-owned subsidiary of Royal Ahold, Peapod pursued exclusive relationships with Ahold U.S.A. grocers: Stop & Shop and Giant Foods. (Peapod also owns and operates two 75,000-square-foot warehouses and thirteen 7,000-square-foot warerooms for inventory and order fulfillment.)

 
 
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