Peapod Opens 2nd Pick-Up Site

CHICAGO — The Peapod Internet shopping site said it plans to open its second freestanding pickup site on Wednesday, allowing shoppers same-day grocery ordering and pick up.

The facility in Deerfield, Ill., allows shoppers to schedule one-hour time slots for grocery order pick-up. Same-day service is available for shoppers who place orders before 10 a.m. for 4 p.m. pick-up.

Peapod, which is owned by Ahold USA [4], is also developing Pick-Up Points (refrerred to as PUPs) at selected Stop & Shop stores. Two additional PUPs at Stop & Shop stores are expected to be announced shortly, Ahold officials said. Peapod opened its first standalone pick-up facility earlier this year in Palatine, Ill.

Andrew Parkinson, president and general manager of Peapod, in a presentation at Ahold’s Capital Markets Days last week said the company was “very pleased” with sales and customer feedback at newly opened pick-up facilities and said the company had identified enough sites to fill the development pipeline for 18 months. Including PUPs in Europe, Ahold expects to have eight open by the end of the year.

Read more: Ahold 'Poised to React' on Acquisitions [5]

Orders at the facilities are fulfilled through various warehouses including adjacent warerooms at stores; a semi-automated warehouse like Peopod’s Lake Zurich, Ill., facility or a converted dark store referred to as a home shopping center. In addition, Peapod is constructing a fully-automated, 300,000-square-foot warehouse in Jersey City, N.J., set to open in 2014.

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