Slowed Peapod growth due to operational issues, not demand drop
Operational problems at Peapod’s Chicago warehouse have dragged on Ahold Delhaize’s U.S. online grocery business, executives told investors in its second-quarter earnings call Thursday.
August 26, 2016
Operational problems at Peapod’s Chicago warehouse have dragged on Ahold Delhaize’s U.S. online grocery business, executives told investors in its second-quarter earnings call Thursday.
Sales growth has fallen from double digits to high single digits, executives said.
Dick Boer, president and CEO, said “all our focus is now [on] the teams to resolve that” issue, with the expectation that Peapod growth will return to double digits once fixes have been made.
Peapod had trouble getting its warehouse up and running in the New York market last year, which dragged on sales, but executives said those issues are now resolved and New York sales growth is in the double digits.
Executives stressed customer interest was not a reason for slowed sales growth this quarter.