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:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.

Video's Going Programmatic, New Study Contends

Video's Going Programmatic, New Study Contends

Some 60% of brands now buy online video programmatically, according to a study from AOL's Adap.TV.