Royal Ahold to Buy Remaining Peapod Stock

Share this article:
Dutch food conglomerate Royal Ahold announced plans yesterday to buy the remaining shares of online grocer Peapod Inc.


The approximately $35 million purchase will be followed by a merger of Peapod with an Ahold subsidiary such as its supermarket chains Giant Food and Stop & Shop. The company did not say whether the Peapod brand would remain intact.


Ahold bought a 58 percent share in Peapod in April 2000. Ahold closed the Internet retailer's large, expensive fulfillment centers and began picking and packing orders out of its Giant and Stop & Shop stores.


The announcement to buy the rest of Peapod comes one week after much-maligned Internet grocer Webvan Group said that it was closing.


It also comes three weeks after English online grocer Tesco PLC said it was entering the U.S. market in a deal with supermarket chain Safeway Inc. Together, the two firms plan to use a store-fulfillment model similar to the one being used by Peapod and the Ahold-owned stores.


Ahold/Peapod and Tesco/Safeway appear to be at the threshold of a one-on-one battle for the U.S. Internet grocery market.


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Native Ads Unmasked!

Native Ads Unmasked!

A Google product engineer introduces a browser plug-in that outs native advertising.

Good Descriptions Rate More Than Good Reviews

Good Descriptions Rate More Than Good Reviews

Price still rules as an online purchase influencer, says a new survey, but basic brand assets should not be ignored in online product presentations.

For CMOs, A Tale of Two Situations

For CMOs, A Tale of Two Situations

A survey of 525 chief marketers finds them voyaging between digital discovery and digital deliverance, riding out turbulent trends to positions of newfound respect.