RealTime IT News

Peapod Expanding in San Francisco

Skokie, Ill.-based Internet grocer Peapod Inc. said plans to open a centralized distribution center in the San Francisco area during the second quarter and will aggressively re-launch its service in that market.

San Francisco is the third market in which Peapod will have implemented its new centralized fulfillment service model since December 1998.

Peapod's new service model, which has already been implemented in Chicago, and Long Island, NY, was under development for much of 1998. The San Francisco fulfillment center will house an assortment of over 12,000 dry grocery, frozen and dairy products.

Peapod has been offering Internet grocery services in portions of the San Francisco market since 1993 pursuant to an agreement with Safeway Inc. Peapod is terminating this agreement in connection with the opening of its own distribution center. The company said it will be obtaining products directly from wholesalers and specialty providers.

Separately, Peapod reported a net loss for the fourth quarter of 1998 of $8.0 million, or $0.47 per share, inclusive of previously announced one-time charges of $2.1 million, or $0.12 per share. This compares to a net loss of $4.2 million, or $0.25 per share, for the same period of 1997.

Revenues for the fourth quarter were $17.2 million, compared to revenues of $17.2 million for the same period of 1997.

For the year ended Dec. 31, 1998, total revenues were $69.3 million compared with $56.9 million for the prior year. Net loss for the year was $21.6 million, or $1.27 per share, compared with a net loss of $13.0 million, or $0.87 per share in 1997.