Ahold Delhaize USA has announced plans to close the Midwest division of its Peapod online grocery sales business.
The move will help the retailer to focus on accelerating growth in the East Coast, it said.
'A Difficult Decision'
The chief executive of Ahold Delhaize USA, Kevin Holt, described the closure of the division as "a difficult decision".
"We know changes such as these are never easy for consumers and communities. We appreciate the loyalty of associates and customers in the Midwest sales business over the past three decades," Holt added.
"We have been and will continue to leverage the learnings from our 30-year legacy of online grocery to enable each of the brands to grow its omnichannel business in the East Coast."
The Impact
The move will result in the closure of a distribution centre and food preparation facility in Lake Zurich and a pick-up point in Palatine in Illinois.
Distribution facilities in Chicago, Milwaukee and Indianapolis will also be affected, the retailer added.
This is expected to put approximately 500 jobs at risk in greater Chicago, Indianapolis, and Milwaukee.
Affected employees will be eligible to apply for other roles within Ahold Delhaize USA, the company said, or avail of severance and transition support services.
The company will also discontinue accepting orders for online grocery delivery in Illinois, Wisconsin, and Indiana from 18 February.
Legacy
Peapod, acquired by Ahold USA in 2000, was the first online grocer in the US.
President of Peapod Digital Labs and chief e-commerce officer, JJ Fleeman, commented, "Peapod began here, and we will remain here, in the heart of Chicago. We look forward to honouring and leveraging Peapod’s longstanding legacy of expertise in online grocery and fully focusing our team’s energy and talent on supporting the growth of each of the East Coast brands."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
