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Peapod Extends its Reach in Chicago

SKOKIE, Ill. - Online grocer Peapod Inc., a subsidiary of Royal Ahold, on Tuesday said it has expanded its delivery service to 14 Chicago suburbs and the South Side community of Beverly, Crain's Chicago Business reports.

The move is in response to a flood of home-delivery requests from residents who live in communities that hadn't been included in Peapod's previous delivery area. "We have a strong customer base in the city and near suburbs, be we are frequently asked to expand our reach," a Peapod spokeswoman said.

About 60 percent of Peapod's business comes from suburbs, and the remainder from the city, the spokeswoman said. While city dwellers use the service because of inconveniences of parking and grocery shopping, suburban residents usually are pressed for time, she said.

Peapod launched its home-delivery service in the Chicago area in 1990, and has since expanded to serve more than 100 zip codes. The company has claimed that it is seeing profits in several of its markets. Peapod is a subsidiary of international food retailer Royal Ahold N.V., which acquired the company in 2001. It also serves markets in Boston, Connecticut, New York and Washington D.C., where it partners with Ahold divisions Stop & Shop and Giant.
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