SCHNUCK EXPANDS ON-LINE SHOPPING SERVICE CHAINWIDE

DON YAEGER

ST. LOUIS (FNS) -- Customers throughout Missouri, Illinois and Indiana can now order groceries on-line since Schnuck Markets here expanded its Internet-based home shopping service chainwide this month. To further stimulate interest in the service, the retailer is offering a number of discounts and incentives weekly to its shoppers.

"We want to introduce the convenience of on-line shopping to our customers who have never tried it -- and believe offering an on-line savings program will create a lot of interest," said Craig Schnuck, chairman and chief executive officer for Schnuck here. "Internet shopping is here to stay. We want Schnucks to be the on-line supermarket for our on-line customer."

Columbia, Mo., customers can receive orders placed through "Schnuck's Express Connection" via delivery or a pickup service. The retailer's other Missouri stores -- DeSoto, Eureka, Festus, Washington and Dillon Plaza -- offer a pickup service only. In addition, Schnuck's Carbondale and Centralia, Ill. stores only provide pickup service. Typically, delivery fees cost $12.95 for same day delivery, and $9.95 for next day or later delivery. In-store pickup service costs $9.95.

Company officials declined to disclose the number of transactions that the service generates per month, however they hinted that the service is experiencing steady growth.

"Our average on-line purchase is higher than our average in-store purchase," said Larry Maggio, director of marketing services. "We're building our core business and picking up sales from customers in areas where we have no stores."

"Fifteen to 20 heavily discounted items per week, in addition to a free item, will translate into a savings of about $35 a week to the on-line shopper," Schnuck said, noting that the savings will more than cover the cost of delivery or pickup service. On-line shoppers also can take advantage of advertised specials available to in-store shoppers.

The on-line service, originally launched in June 1997, was first available in 52 Missouri zip codes in the city of St. Louis, St. Louis county and St. Charles county in Missouri. It was later expanded to selected communities in Illinois and Indiana.