When was Peapod founded?
Andrew and Thomas Parkinson pioneered the online grocery delivery concept in 1989 when they founded Peapod in Evanston, Illinois. Combining backgrounds in consumer product marketing and technology, the brothers established Peapod as a lifestyle solution for busy families.
How did the company operate in the early days?
In 1990, Peapod partnered with Chicago-area Jewel Food Stores to fulfill orders. In the beginning, Andrew, Thomas and their families did the picking and packing and made deliveries with their own cars.
When did Peapod join the Internet?
Peapod joined the Internet in 1996, launching its own website, www.peapod.com. That same year, the company made the Inc. 500 list of fast-growing privately held US companies.
When did Peapod end its affiliation with Jewel Food Stores?
Peapod was associated with Jewel until 1999 when it opened a facility in Niles, Illinois, and began picking orders from there. Using its own picking center helped Peapod control inventory and product quality. In 2000, Peapod became a wholly-owned subsidiary of Royal Ahold, the international food provider based in The Netherlands, and pursued exclusive relationships with Ahold USA grocers, Stop & Shop and Giant Foods. (Peapod also owns and operates two 100,000 plus-square-foot warehouses and eight 7,000-square-foot warerooms). Ahold had nothing to do with the transition out of Jewel; Peapod had already moved to its own facility when Ahold purchased the company.
Wasn’t Peapod a victim of the dot-com bust?
When Peapod started, it was not a “dot com baby.” The business was grown slowly and wisely by leveraging partnerships with other established companies. 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.
What’s changed since Peapod joined forces with Royal Ahold?
Today, the Internet grocer serves more than 355,000 customers each year. The Ahold acquisition has allowed Peapod to employ a more integrated bricks-and-clicks business strategy: expanding its partnerships with Ahold USA 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.
What is Peapod’s business model?
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 USA stores, are primarily used in new markets so as to leverage 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 holds more control over inventory and logistics under this model.
Who is Peapod’s competition?
Any non-Ahold company that sells groceries, whether online or in store.
What is Peapod’s outlook on the Internet grocery industry?
In the past this industry was overrated, but Peapod management believes that the sector is currently underrated. According to Peapod President Andrew Parkinson, 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.
Can customers use manufacturer coupons with Peapod?
Customers can redeem valid manufacturer coupons with Peapod drivers. Coupons are credited to a customer’s account and can be applied to future orders. Peapod also features hundreds of weekly specials online.
What types of features does Peapod offer to enhance the online shopping experience?
Peapod organizes products and the customer’s purchase history to simplify the shopping experience. Helpful features include weekly specials, new items, express shop, shopping lists, sort features, NutriFilter, aisle browsing, item search, coupons, recipes, and more.
How do Peapod’s products stay fresh?
Peapod’s proprietary Stay Fresh delivery system maintains products at their optimum temperature from the farm all the way to a customer’s front door. Warehouses, trucks and delivery bins are all climate-controlled.
How are customers’ items selected in the warehouse?
Working in one of the company’s two state-of-the-art freestanding warehouses (in Chicago and Washington DC) or in any of 22 smaller warerooms (in the Stop & Shop markets), Peapod personal shoppers are trained to select quality meats and seafood and to improve the ritual of hand-picking, squeezing and smelling perishables.
Is all transporting of goods done via trucks? What is the delivery fee?
Yes, Peapod only uses its climate-controlled trucks to deliver groceries into neighborhoods around the country. For a fee as low as $6.95, most customers can place orders for delivery as soon as next-day (normally within a two-hour window) or even weeks in advance.
Where is Peapod based?
Peapod’s headquarters are in Skokie, Illinois.
Where are Peapod’s markets located?
Peapod today stands as the country’s leading Internet grocer, serving 24 U.S. markets in the states of Illinois, Wisconsin, Indiana, Maryland, District of Columbia, Virginia, Massachusetts, Connecticut, Rhode Island, New Hampshire, New York, New Jersey and Pennsylvania.
How many orders has Peapod delivered since its inception?
Peapod has made over 20 million deliveries since it first started.
Does Peapod provide financial annual reports?
No. Since Peapod operates under Royal Ahold, all financial reports are kept private. Peapod is not publicly traded.
Who implements new ideas at Peapod?
Peapod develops ideas from all areas of its employee base. Peapod also considers outside recommendations from consumers.
Where does Peapod focus its advertising?
Peapod’s website hosts most of its advertising. However, Peapod also advertises in Stop & Shop stores and by way of direct mail, transit ads and television.
Will Peapod’s services eventually be available nationwide?
Peapod certainly plans to grow, but it is currently unknown whether or not Peapod’s services will reach all 50 states.
1989, by brothers Andrew and Thomas Parkinson
9933 Woods Drive, Skokie, Illinois 60077
Consumer Contact Info
Peapod is a wholly-owned subsidiary of Ahold (based in The Netherlands)
- Andrew Parkinson, President and GM
- Thomas Parkinson, SVP and CTO
- Carrie Bienkowski, SVP, Marketing
- Michael Brennan, SVP, Central Support, Merchandising and Midwest
- John Burchard, VP, IT Infrastructure, Support & Compliance
- Sheri Dean, VP, Human Resources
- Scott DeGraeve, VP, Supply Chain & Business Development
- Andrea Eldridge, SVP, Commercial East Coast
- Tom Finn, VP, Finance & Accounting
- Norman Haberl, VP, Operations
- David McHugh, VP, Operations
Peapod features over 8,000 products in a range of categories: produce; meat and seafood; deli items; prepared foods; natural and organic foods; Kosher foods; office and school supplies; seasonal items; video products; pet items; health and beauty aids; wine, beer and spirits (in specific markets); and private labels from Stop & Shop and Giant
- Peapod by Stop & Shop* (Connecticut, Massachusetts, New Jersey, New York and Rhode Island)
- Peapod by Giant* (Washington DC, Virginia and Maryland)
*Ahold USA supermarket companies
- Illinois - Greater Chicagoland
- Wisconsin - Milwaukee, Kenosha, Racine, Madison
- Indiana - Portions of Lake County in Northwest Indiana
- District of Columbia
- Virginia – Northern part of state (most communities in Fairfax, Manassas and Loudoun Counties)
- Massachusetts - Eastern part of state (most communities in Barnstable, Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester Counties) and select towns in the Pioneer Valley of western Massachusetts
- Connecticut - Statewide (except Litchfield and Windham Counties)
- Rhode Island - Statewide (except Washington County)
- New Hampshire - Portions of Rockingham County
- New York - New York City (mainly zip codes in Manhattan and the other NYC boroughs), suburban NYC (most communities in Long Island, Rockland and Westchester Counties and additional communities in Dutchess and Putnam Counties)
- Pennsylvania - Philadelphia region
Peapod delivered to over 350,000 customers in 2010
Since its inception, Peapod has delivered more than 23 million orders
Most customers can place orders up to seven days a week for delivery as soon as the next day or two weeks in advance. When customers choose a delivery day, they also choose a two-hour window that is convenient for them
Average basket size is over $157; customers typically shop twice a month
1,800 employees/associates country-wide