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BizReport : E-commerce : October 09, 2006
Peapod: Online Sales Of Health Food Soar
Organic food sales over the past few years have more than doubled and the increased competition for a share of the market is resulting in lower prices. The offline trend is replicated online. Big retailers are buying into the e-trend, including Peapod, Giant’s online outfit.
The e-tailer experienced such phenomenal sales that it teamed up with Wild Oats Markets Inc., struggling to keep pace with consumer demand.
Changes in federal regulations are cited as a major drive behind the skyrocketing sales numbers of health food ventures. And many involve online sales. The U.S. Department of Agriculture issued new standards for which food can be classified as organic in 2002. The action was seen as the validation the industry needed. The market segment grew by 9.1% alone last year. It now represents a market worth $51 billion, says the Natural Foods Merchandiser in its Market Overview.
Nutrition Business Journal and the Organic Trade Association classified organic food slightly differently, but also come to the conclusion that there’s massive growth involved. They believe organic food sales jumped from $3.6 billion in 1997 to $13.8 billion in 2005. Wal-Mart Stores Inc. and Target Corp. have recently expanded their offerings considerably. "It [online sales, ed.] is doing so well that we can't get the products in fast enough," said Tony Stallone, vice president of fresh markets at Peapod, in an interview with the Chicago Tribune. Aside from the regulatory changes, growth is spurred by people’s worries about health and obesity.
Tags: online sales, organic food, Target.com
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Comments
In trying to sell local health food store on a website, blog, and Twitter micro-blogging (great for Google juice SEO), it dawned on me: many health food customers are older, feeble, painful to visit a store. so ecommerce site, online product sales, is a no-brainer killer app! will print this article and give it to the guy. thanks.
Posted by: vaspers the grate aka steven e. streight on May 31, 2007 18:20
oops, it doesn't print out correctly, right side truncated, and I just noticed your Forbidden to Redistribute warning. my bad. sorry. won't give it to the guy. ;^)
Posted by: vaspers aka steven e. streight on May 31, 2007 18:42