Peapod Facts

Peapod – an Ahold Delhaize company – is the country’s leading Internet grocer, serving 24 U.S. markets throughout Connecticut, Illinois, Indiana, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Virginia, Washington, D.C. and Wisconsin. Founded in 1989 as a smart shopping option for busy households, today Peapod has delivered more than 40 million grocery orders. Customers can order online or on Peapod’s free mobile app for delivery to homes and workplaces or pick-up at many convenient locations.

When was Peapod founded?

Andrew and Thomas Parkinson pioneered the online grocery delivery concept in 1989 when they founded Peapod in Evanston, Illinois as part of a local incubation lab. Combining backgrounds in consumer product marketing and technology, the brothers established Peapod as a smart shopping solution for busy families.

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 Delhaize stores, are primarily used in new markets so as to leverage the stores’ infrastructures. Unlike other traditional grocers, 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. Peapod has 4 warehouse fulfillment centers and 21 warerooms that are attached to a physical store.

Is Peapod a stand-alone company?

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. In 2016, Royal Ahold merged with Belgian-based retailer Delhaize, creating Ahold Delhaize, one of the world’s biggest food retail groups.

What’s changed since Peapod joined forces with Ahold Delhaize?

The Ahold Delhaize acquisition has allowed Peapod to employ a more integrated bricks-and-clicks business strategy: expanding its partnerships with Ahold Delhaize stores (Peapod by Stop & Shop and Peapod by Giant); leveraging the buying power of Ahold Delhaize to make higher-volume, lower-priced purchases; lowering distribution and transportation costs; and boosting inventory management to reduce out of stocks. Peapod now has over 200 Pick-Up sites at Ahold’s Stop & Shop and Giant store locations. Customers can order groceries online and choose to pick them up on their way home from work or other errands.

What is Ahold Delhaize?

Ahold Delhaize is one company with 22 strong local brands (Peapod included, of course!) in 11 countries on 3 continents. Together, Ahold Delhaize has approximately 6,500 stores serving over 50 million customers each week, making it the largest traditional grocery retail group in the U.S.

Does Peapod cannibalize physical store sales?

Far from it, we see little to no cannibalization of store sales. Ahold Delhaize believes in the power of offering shoppers a true omni-channel experience. Within the Peapod and Ahold Delhaize ecosystem, households shopping both online and offline spend more than households that only shop offline. In fact, they shop significantly more – three times more per period that in-store shoppers only.

What is Peapod’s outlook on the Internet grocery industry?

Sales for online groceries, both delivery and pick-up, are continuing to rise. With its experience and expertise in grocery delivery, Peapod is excited for the future as more Americans look towards the internet for their groceries. From cities to suburbs, consumers can rely on Peapod’s convenience for their weekly shop.

Can customers use manufacturer coupons with Peapod?

Peapod doubles manufacturers’ coupons, features hundreds of weekly specials online, and in Stop & Shop and Giant markets, customers earn Gas Rewards and A+ School Rewards with every purchase. Customers redeem valid manufacturer coupons with Peapod drivers. Coupons are then credited to a customer’s account and can be applied to future orders.

What types of features does Peapod offer to enhance the online shopping experience?

The special features on Peapod’s mobile app and desktop platform are designed to help the custumer shop faster, save money, and select the right products based on their personal taste and dietary needs.

  • Express Shop: Quickly locate and select all ingredients for a specific recipe, meal plan, etc. Just type your list into the notepad; click Start Shopping and the products matching your first item will be displayed.
  • Order Genius: Auto-fill your cart with the items you buy most frequently and even recall shopping history from Stop & Shop and Giant loyalty reward cards.
  • Sort Feature: Find products with the best price, to meet your dietary needs, even see which product is most popular. Select your sort preference from the drop-down box at the top of every page. Click the Save Sort link and your products will always be sorted that way.
  • Filter Feature: Filter to only see the products that meet your needs, whether you’re looking for dairy-free cereal or peanut-free snacks.

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 out of one of the company’s state-of-the-art freestanding warehouses (in Chicago, Washington DC and New Jersey) or in any of the smaller warerooms, Peapod’s team of more than 4,600 associates is made up of drivers with impeccable records, Personal Shoppers who select the best produce, meats and seafood, and a team of behind-the-scenes support supply chain and logistics experts who work hard to optimize our customers’ shopping and delivery experience.

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 up to two 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 40 million deliveries since it first started.

Does Peapod provide financial annual reports?

No. Since Peapod operates under Ahold Delhaize, 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.

Will Peapod’s services eventually be available nationwide?

Peapod certainly plans to grow, but there is plenty of demand in existing markets. The recent Ahold Delhaize merger expands the potential geographic trading area significantly into markets where online grocery is underpenetrated.

Does Peapod offer same day or instant delivery?

The typical Peapod customer is looking for a solution that meets their full basket, weekly shopping needs. They are planners who want to order today for delivery tomorrow or have a constant delivery day each week. Many of the instant delivery models are not financially sustainable and are being utilized for quick fill-in trips that are not part of Peapod’s core offering. Peapod has a long history of innovation and is constantly testing different service models that can help improve on the core mission: “to make our customers’ lives easier” but instant delivery is not part of the company’s focus.