Webvan Exits Sacramento Market
The beleaguered online grocer has closed operations in Sacramento, CA, less than two weeks after CEO George Shaheen resigned.
The shutdown will eliminate 17 jobs and is designed to better the cash-starved stand-alone's chances of reaching profitability in its nearby Oakland, CA, operations. The move allows Webvan to eliminate some of its transportation expenses, as it had been trucking groceries from its Oakland warehouse to its Sacramento facility.
Webvan, Foster City, CA, exited the Dallas market in February. Around the same time, the retailer nixed plans to enter the New Jersey/New York market after building a $30 million, 300,000-square-foot fulfillment facility in the area.
The 2-year-old firm -- which has described itself as "the milkman meets the Internet" -- has been hit hard with criticism from industry analysts during the past three months because of its decision to spend money on TV and radio ads.
In addition, Webvan is in danger of being delisted from the Nasdaq for having a stock price of less than $1. Its closing price yesterday was 24 cents.