In New York a lot, Trish Shortell old customers from FreshDirect, the No. 1 online grocery store in the city. But Shortell, a recruiter for a New York advertising agency and a mother of three, began to find a selection of FreshDirect is lacking and the prices a bit rich, even by New York standards. Cooked wild king crab legs go for $ 24.99 per pound, and Swiss Gruyère cheese, aged 14 months in Cave Alpine, $ 19.99 per pound. So lately Shortell will transfer some purchases via Peapod, an online grocery store owned by rival Dutch retailer ahold. That's good news for the smugglers, who charge $ 2.79 for a half gallon of farmland Special Request Skim Plus milk Fat-free, $ 1.50 cheaper than FreshDirect. Proud of PEG Merzbacher, director of marketing via Peapod: "We priced supermarket outside the city." Poses a challenge for FreshDirect, an orange and green delivery truck decided the streets of Manhattan double parked for a decade. Now its drivers jockey for space on the roadside from Van via Peapod. Although a relatively new kid on the block in New York, the internet via Peapod Grocer is the largest in the U.S., thanks in part to a partnership with the Stop large bricks-and-mortar stores ahold & Shop and Giant supermarket chain stretching East Coast.
It waited until 2011, though, to enter Manhattan, where FreshDirect estimate has 80 percent of the market. To catch up, via Peapod offers free shipping for new customers and lower prices on items such as coffee daily and upcoming milk.That lure enough buyers to give via Peapod getting sales more than 10 percent in 2012, the same increase estimated this year, said Merzbacher. Will help achieve its growth objectives ahold of tripling the global online sales of € 1.5 billion ($ 2 billion) in 2016. U.S. consumers will buy $ 21000000000 shopping on the Web in 2016, a surge of 52 percent from last year, estimates Forrester Research (forr) closely held FreshDirect expects consumers will remain loyal to the fresh food and prepared foods that help drive sales. approximately $ 400 million last year, according to the company. "There is room for two competitors," said Tom Meyvis, a professor of marketing at New York University Stern School of Business. "What you can do is focus less via Peapod gourmet segment and emphasize regular products at competitive prices." Via Peapod, founded by brothers Andrew and Thomas Parkinson in suburban Chicago in 1989 , is obtained by ahold in 2000, as the dot-com bubble burst. Now selling to the East Coast and in some Midwestern markets. Peapod avoided Manhattan for years, partly because of snarling traffic and tight parking regulations may make delivery business nightmare. The FreshDirect is no issue with the newspaper reports that the driver who collected $ 600,000 in parking tickets during the first two challenges years.Despite company, Manhattan is an attractive market for wholesale online thanks to solid, Web-savvy, time-starved people. FreshDirect sales were 100 million dollars after two years, persuaded recommendation engine and booking system that promises delivery within two hours of the window. Now serves 100,000 active customers. After securing a strong presence in New York City and the surrounding Suburbs, FreshDirect extended plan October.Peapod Philadelphia win over Manhattan are expecting lower prices. Sell ​​12-ounce bag of Dunkin 'Donuts (DNKN) mix original ground coffee for $ 6.99, 30 percent cheaper than FreshDirect. Evian water, Skippy peanut butter, and Kellogg's Frosted Flakes with also cheaper. FreshDirect co-founder David McInerney said class company with fresh produce, meat, fish, and cheese provide a significant advantage over via Peapod. He said competition from natural foods purveyor Whole Foods Market (WFM), with seven locations in Manhattan, is a major issue. The company has built about 100 microwave meals, some co-branded with a popular Manhattan restaurant as a Rosa Mexican. Priced at about $ 9, the food appeals to busy New Yorkers who want fast food. "There is no competitive advantage in the packaging of food," said McInerney. "There are many people who can send a box of cereal." Bottom line: the purchase of U.S. consumer online shopping is expected to jump by 52 percent over the next four years.