High Costs, Slowing Sales Force SimonDelivers to Shut Down

Jul 17, 2008 6:00 AM


         Subscribe in NewsGator Online   Subscribe in Bloglines

MINNEAPOLIS — SimonDelivers, the Internet grocer here that survived the dot-com bust, succumbed this week to rising gasoline costs and changing consumer habits in a weakening economy. The nine-year-old company, which reportedly generated about $55 million in annual sales while delivering to 19,000 customers in a 3,200-mile radius of the Twin Cities, said Tuesday it would continue to fulfill customer orders only while its current supplies lasted. Simon Fuller, the company’s namesake, founder and former chairman and chief executive officer, told SN in an interview that rising costs for gas and commodities, along with slowing sales as the result of customers seeking less-expensive shopping options, were the main culprits in the retailer’s demise. He said the privately held company sought to secure new financing or a strategic partnership to ride out the economic downturn, but that those efforts were unsuccessful.

Read More of Today's Headlines

Subscribe / Renew to Supermarket News

Supermarket News

The most reliable source of industry news and insight...in print and online.

Most Viewed News

Read More News

Retail Analytics
Brian Ross

View All Questions

Refresh: A Whole Health Blog

Bob Vosburgh

Bob Vosburgh:

Read More Refresh

Articles by Market
Retail/Financial
Executive Changes
Grocery/Center Store/
Brands
Health & Wellness
In-Store Bakery/Deli/Meals
Logistics
Marketing
Meat/Seafood/Dairy
Nonfoods/Pharmacy/HBC
Produce/Floral
Specialty/Ethnic
Technology
Key Issues
Food Safety/Recalls
Legislation/Regulations
Sustainability/Green
Resources
Profiles & Rankings
Webinars
White Papers/Studies
Whole Health Blog

Back to Top

Subscribe to SN

Latest Cover

IRI Fast Trends

Not much remains the same in the food-distribution industry, whether it's the marketing of supermarket departments, the advent of new formats or rapidly changing consumer preferences. See what's changing now in the latest IRI Time and Trends report.

SN Daily Update

newsletter image

The food trade’s leading daily news service. Register Here

Upcoming Events

Natural Products Expo East,
Oct. 15-18, 2008,
Natural Products Expo East, Boston Convention and Exposition Center; 303.939.8440.

PMA Fresh Summit,
Oct. 24-27, 2008,
Produce Marketing Association,
Orange County Convention Center,
Orlando, Fla.; 302.738.7100.

View All Upcoming Events

Jobs/Classifieds

View All Classifieds

Premium Content

Tesco

Tesco: F&E Results ‘Encouraging’

The first reported financial results of the fledgling Fresh & Easy chain revealed heavy losses and modest but improving sales, officials of parent company Tesco here said last week.

Supermarket News Secret's Out

Sign of the Times

Let's say Wal-Mart Stores wants to sell more carbonated soft drinks.

 

Supermarket News Sharper Image

Fresh Insights

The produce industry is once again gearing up for the Produce Marketing Association's annual Fresh Summit International Convention & Exposition, which will be held this year Oct. 24-27

 

Supermarket News Show Stoppers

Hot Item

As the fastest-growing demographic group in the United States, Hispanic shoppers have had the attention of food retailers for years now.

Supermarket News 
Green Pledge

Green Pledge

Driven by the need to cut energy costs, as well as by a desire to improve the environment, many food retailers have embraced a wide assortment of “green” strategies in recent years.