Massachusetts-based Ahold Delhaize USA announced plans to close the midwest division of its Peapod online grocery sales business, which comprises $97 million in revenue of the $1.1 billion in total online revenue in the U.S. This decision will enable Ahold Delhaize USA to focus on expanding the leadership position of its brands on the East Coast and execute its strategy of enabling each local brand to be the leading omnichannel grocery retailer in each of their markets utilizing the market-leading capabilities of Peapod Digital Labs. There are no changes for customers in other markets.

Effective Feb. 18, 2020, service for Midwest customers placing online grocery delivery orders in Illinois, Wisconsin and Indiana will be discontinued. As a result of this decision, the following facilities will close: a distribution center and food preparation facility in Lake Zurich, IL, distribution facilities in Chicago, IL, Milwaukee, WI and Indianapolis, IN, and a pick-up point in Palatine, IL.

“This was a difficult decision given Peapod’s rich history in the Midwest,” said Kevin Holt, CEO, Ahold Delhaize USA. “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.”

For more information, visit http://www.aholddelhaize.com.