Peapod to halt Midwest food delivery operations next week

CHICAGO (WLS) -- The grocery delivery service Peapod is ending home deliveries in Illinois next week.

Roughly 400 workers in Chicago, Lake Zurich and Palatine are expected to lose their jobs as facilities close. Workers in Milwaukee and Indianapolis will also be affected.

Peapod grocery delivery orders will be discontinued in Illinois, Wisconsin and Indiana starting February 18.

Analysts said Peapod's Midwest operation became challenging because it was online only.

There's also been increased competition from other grocery stores offering delivery services.

Peapod will continue to operate on the East Coast.

"This was a difficult decision given Peapod's rich history in the Midwest," said Kevin Holt, CEO of 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."