In a blog post and announcement to customers, New York-based online grocer FreshDirect BB #:164151 says it is exiting two markets, effective this week.
The retailer said in a post the move is to focus on better serving customers in the New York City metro area:
For 20 years, FreshDirect has been integral to the fabric of food culture in New York City. As a homegrown, trusted New York City brand, we are strengthening our commitment to servicing the city and the greater New York tri-state area. To better serve our customers in the tri-state market surrounding New York City, we will be expanding in our home markets in the coming years. Because of this expansion, we will be exiting the markets that are serviced by our Washington, DC and Philadelphia facilities.
Final deliveries in Washington, D.C. and Philadelphia are concluding September 3, the company said.
FreshDirect recently celebrated its 20th anniversary in business.
While online grocery sales increased 17% year-0ver-year in July, this is not the first online-only grocer to pull back on services in the past few weeks. San Francisco-based Farmstead pulled out of all but its home market, and several rapid grocers have laid off workers or decreased market areas in key U.S. markets.