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The Boston Business Journal reports that Ahold-owned Peapod is close to profitability in the Boston market, where it functions as the online arm of Stop & Shop Supermarkets.

Peter Abell, director of retail research for Boston-based AMR Research, tells the paper that he believes the entire Peapod operation “generated between $130 million and $175 million in 2001, up from $93 million the year before.” Last year, the paper reports, Peapod sales in the Boston market increased 42 percent over the previous year.

The key to the growth and incipient profitability, according to analysts, is that Peapod is no longer a “pure play” operation, but rather has been integrated into Ahold’s USA operations, complete with a store-pick model that cuts costs.
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