Fresh Direct cuts prices to get back its New York customers

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Fresh Direct pioneered selling groceries online, long before most Americans considered shopping this way. But now the retailer isn’t even the market leader in New York, where it started two decades ago. Enter Ahold Delhaize, which bought Fresh Direct in the deal that closed in January. The acquisition gave the Dutch retailing giant (2020 revenue 75 billion euros) a foothold in the $9 billion online grocery market, which is America’s largest. And now it’s turning to Farhan Siddiqui, who is serving as the interim CEO of Fresh Direct, taking over his role as Chief Digital Officer of Ahold, to better compete with Instacart and Amazon.

Siddiqui’s growth strategy includes bringing down some prices despite creeping food inflation. He’s doubling down on New York by opening small, automated warehouses in the region to expedite the delivery of wine and other popular items. And the retailer is a; so increasing its product assorted.

Fresh Direct cuts prices to get back its New York customers

As from the news sources, Fresh Direct is a strong brand, but people have forgotten about it because of the new ones- these new shiny items. Fresh Direct was in survival mode for some time. We need to convert it into growth mode, so we did a three-year plan.

Expectations for convenience are changing, and two-hour delivery is important now. So they will build two micro-fulfillment centers in Westchester and Long Island within the next two years to enable more express delivery. They are planning one or two pop-up activities this year in New York. These are more marketing-campaign types of pop-ups than an actual store.

They are reducing prices on fresh items like berries, salmon, and ground beef. Right now they are also absorbing inflation and not pushing it forward. They now operate a ” Rose Express” service to the Hamptons with 214 beer, wine, and spirits items delivered within two hours. And they are progressively thinking about the bags to be changed from cardboard to shopping bags.

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