Retailers

Price Cuts, Assortment Changes En Route to FreshDirect

Basket-building strategies mark influence of Ahold Delhaize
Photograph: Shutterstock

Lower prices and updated assortments are on their way to FreshDirect in moves that represent the early influence of the company's new owner, Ahold Delhaize.

The Dutch retailing giant acquired FreshDirect, a pioneer in e-commerce and delivery in New York, late last year. Its chief digital officer, Farhan Siddiqi, has served as its interim CEO since co-founder David McInerney departed in May.

In a release Monday, the company said it would introduce lower prices on a wide assortment of products effective Sept. 1 and that it has already bolstered its selection by introducing 250 center-store items under Ahold Delhaize’s private brands: Nature’s Promise, a natural and organics line, Taste of Inspirations, a specialty and imported-products line.

These changes reflect something of a new approach for FreshDirect, known for pioneering online grocery and delivery in New York. Officials say the changes would help build baskets and emphasize the business's ability to provide customers with “one-stop” shopping in addition to building its equity as a fresh-food destination.

“FreshDirect is upping the convenience of one-stop shopping to bring customers great value on center of the store products, while continuing to deliver the best in fresh, speed and ease,” said Scott Crawford, FreshDirect's chief merchandising officer. “We continue to integrate the stellar resources and expertise of FreshDirect and Ahold Delhaize to super-serve customers so they can address all of their grocery needs in one purchase.”

FreshDirect said it would launch an extensive marketing campaign to support the offering. “Fall in Love with Fresh” centers on “extraordinary quality and exceptional value,” the company said.

A pilot test of the new pricing was conducted in different zones across FreshDirect’s delivery area for about 20% of the company's customer base over the summer; that test's “great response” from shoppers encouraged the expanded rollout.

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