Ahold USA is gearing up to double the capacity of its online retailer Peapod this year.
A new 300,000-square-foot warehouse for Peapod will open in New Jersey later this year, Ahold chief executive officer Dick Boer told analysts during a conference call discussing the company’s 2013 financial results, according to a report in Chain Store Age.
The move will help Peapod’s ability to serve New York City, Boer told analysts.
In late February, Ahold reported that all of its U.S. retail operations — Stop & Shop, Giant Food, Giant Food Stores, Martin’s Food Markets, and Peapod — had net sales for 2013 of $26.1 billion, up 1.1% from 2012. Identical store sales were up 0.2%, according to Ahold. In the fourth quarter of 2013, Ahold USA net sales were $6 billion, down 2.1%, reflecting the sales effect of Hurricane Sandy, according to the report.
In January, Ahold said it has a company-wide target to triple its online food sales by 2016, and the company said an important part of that goal was opening new pick-up points in the U.S. and Europe. The company has more than 120 pickup points for online customers in the U.S., and also has invested in what it calls a digital innovation hub in Chicago.
In its annual report issued in late February, Ahold said both its U.S. and European operations had online food sales totaling $820 million in 2013, up 13.5% from 2012.