Peapod To Stop Midwest Delivery, Close Palatine Facility

PALATINE, IL — A grocery delivery service will end its 30-year run in Illinois, Wisconsin and Indiana. Peapod Grocery Delivery Services, the first online grocer in the United States, announced its decision Tuesday, telling customers deliveries would continue through Feb. 18 — the last day that services would be offered.

Peapod will also be closing a distribution center and food preparation facility in Lake Zurich; distribution facilities in Chicago, Milwaukee and Indianapolis; and a pick-up point in Palatine. About 500 associates in the Chicago, Indianapolis and Milwaukee areas will be affected by the company's decision, and will be eligible to apply for other positions within the company, according to a news release from Ahold Delhaize USA companies.

Peapod will cut its Midwest services amid plans to instead focus its attention on its East Coast division, according to the news release.

“As we’ve previously shared, to continue our strong track record of sales growth and market share gains, we are accelerating our growth and expanding the leadership positions of our businesses in our East Coast markets,” said Kevin Holt, CEO of Ahold Delhaize USA. “This move will enable us to fully focus on markets where we have strong store density, leading market share, and a longstanding heritage of customer loyalty.”

Meanwhile, Peapod will continue to house its Digital Labs team in its Chicago office, company officials said.

“Chicago will remain the headquarters for our Peapod Digital Labs team, and we will continue to draw from the valuable pool of digital and eCommerce talent in the market,” said JJ Fleeman, president of Peapod Digital Labs and Chief eCommerce Officer. “Through Peapod Digital Labs, we will continue to build upon Peapod’s technology legacy. Peapod began here, and we will remain here, in the heart of Chicago. We look forward to honoring and leveraging Peapod’s longstanding legacy of expertise in online grocery and fully focusing our team’s energy and talent on supporting the growth of each of the East Coast brands.”