Web Grocer Expands into Southern Connecticut

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After almost going under just a few months ago, Web grocer Peapod yesterday announced plans to begin service in the lucrative southern Connecticut market.


Peapod plans to work with Royal Ahold's Stop & Shop supermarkets to supply its customers in the area, which boasts one of the highest per-capita income levels in the country.


Netherlands-based Ahold bailed out Peapod with a $73 million investment in April when the company announced it was in danger of going under.


Peapod will now compete directly with Boston-based ShopLink, which has been operating in Fairfield County, CT, since the beginning of the year.


"With Ahold's strong East Coast presence and Peapod's established operations in Boston and Long Island, the Connecticut market is a great strategic fit as we continue to focus on expanding along the Eastern seaboard," said Marc van Gelder, Peapod's president and chief executive officer. Van Gelder joined Peapod shortly after Royal Ahold agreed to purchase a 51 percent stake in the company.


"Stop & Shop has strong brand equity among Connecticut residents. In addition, there is a recognized demand for our online shopping service in this area. Finally, the area's customer base truly fits the online shopping profile. All of these factors should enable us to establish a strong presence in this market."
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