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, ...

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