business news in context, analysis with attitude

  • More news about FreshDirect, the much lauded New York-based Internet grocery service that is looking to move beyond its current markets of Manhattan, parts of Brooklyn, and Bayside, Queens into more of Brooklyn, Forest Hills, Queens, and, by autumn 2004, Long Island.

    Beyond these markets, according to the company’s chief creative officer Alvin Kwok, who spoke at a Direct Marketing Idea Exchange luncheon, the company is looking at other east coast cities that will offer it sufficient density of population to make the business model work.

    And Kowk said, Fresh Direct is considering getting into the mail order business, which would bring it into competition with companies like Omaha Steaks and even

  • FreshDirect says it currently has annual sales of $125 million and is turning a profit on 25,000 orders a week at an average of $97 apiece.
KC's View:
We're enthusiastic about Fresh Direct's future, even if a little skeptical about its profitability.

But this mail order thing worries us. It just seems like too much too fast. Get the core business down first, folks.