PEAPOD, Skokie, Ill., the Internet grocery company, is rapidly expanding its warehouse model with a third dedicated distribution facility, opening in San Francisco during the second quarter of 1999. Unlike Peapod's retailer-supported Chicago and New Hyde Park, N.Y., warehouses, wholesalers and specialty providers will supply this facility with more than 12,000 dry-grocery, frozen and dairy items. The change in suppliers means a split from Peapod's longtime retailing partner Safeway, Pleasanton, Calif. "Although we have enjoyed a long relationship with Safeway, the business has been modest for several years due to a lack of marketing attention," said Andrew Parkinson, chief executive officer of Peapod.
