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FreshDirect, the online grocer serving the New York tri-state area since 2002, over Memorial Day weekend opened a pop-up on Main Street in Southampton, New York, marking its first physical retail location.
The location, which will be open until the end of December, plays up FreshDirect’s local approach. Working directly with farmers and growers, FreshDirect offers more than 12,000 SKUs, with about 60% of its mix being fresh foods.
“Designed to evoke the charm of a classic farmers market, the space features wooden pallets, crates, and natural textures that set the stage for an abundant selection of local produce, prepared foods, wine, and beer,” FreshDirect said in a press release. “Guests can shop a curated selection of local favorites, including farm-fresh produce, small-batch cheeses, olive oils, and seasonal items from regional farms like Wells Homestead Acres and Deer Run Farms.”
The location also includes a Jack's Stir Brew Coffee counter, and a limited-edition Hamptons-inspired FreshDirect tote is available. In-store experiences will include ice cream socials and wine and cheese tastings.
FreshDirect will also take over a house in East Hampton to host pizza-making classes, meetings with local farmers and artisans, and other events that require more space than the store, according to the release. FreshDirect, acquired by Turkey-based ultrafast grocery delivery company Getir in 2023, is also exploring opportunities for same-day delivery for the Hamptons region directly from FreshDirect on Main.
With a fleet of 400 trucks and a 640,000-square-foot production and distribution center in the Bronx, FreshDirect’s business model is based on the scheduled delivery of orders to homes or offices at certain times of the day.
A New York Post article from January painted a bleak future for FreshDirect, with multiple sources indicating to the publication that the online grocer was “losing at least several million dollars a month on about $600 million in annual sales.”
The article noted that FreshDirect was already struggling under its former owner Ahold Delhaize, which acquired the business in 2021 only to see demand for grocery delivery crash after the pandemic. Under Ahold, FreshDirect pulled out of Washington, D.C., and Philadelphia as well as some communities in Virginia and Maryland to focus solely on the New York metro region.
FreshDirect also faces heightened competition in online grocery from Walmart and Amazon, as well as from third-party delivery apps such as Instacart, DoorDash, and Uber Eats.
The pop-up shows some commitment to FreshDirect from Getir, which itself is undergoing a retrenchment and restructuring. In March, FreshDirect joined the Uber Eats platform, marking the first time that the grocer’s offerings became available for on-demand delivery on a third-party app.
“This collaboration with Uber Eats marks a significant step forward for FreshDirect,” said Metin Hacioglu, deputy CEO of FreshDirect, at the time. “Our customers rely on us for the freshest, highest-quality food and groceries, and now, with Uber’s technology and delivery expertise, we can offer them the same exceptional products they love — faster and more conveniently than ever.”