Ahold Delhaize USA says it will close the Midwest division of its online grocery sales business, Peapod, on Feb. 18, discontinuing the grocery delivery service in Illinois, Wisconsin and Indiana.
The decision will result in the closure of company facilities in five cities across the Midwest, affecting approximately 500 associates.
“This was a difficult decision given Peapod’s rich history in the Midwest,” said Kevin Holt, Ahold Delhaize USA, CEO. “We know changes such as these are never easy for consumers and communities. We appreciate the loyalty of associates and customers in the Midwest sales business over the past three decades. We have been and will continue to leverage the learnings from our 30-year legacy of online grocery to enable each of the brands to grow its omnichannel business on the East Coast.”
Ahold Delhaize USA says the decision allows the grocery retail group to focus on expanding the leadership position of its brands on the East Coast and execute its strategy to enable the company’s local brands to be leaders in each of their markets.