AmazonFresh began expanding online grocery service this week.

JERSEY CITY, NJ-Will Amazon.com push into the New Jersey market with its newly expanded fresh-produce delivery? Most likely, supermarket consultant Bill Bishop told The Record 

 

“The question is, are they building any distribution facilities in your area, and if the answer is that they are, then I think you probably could expect it sooner rather than later,” Bishop said.

The online distributor is currently building a million-square-foot facility in Robbinsville, just outside Trenton.

In March, Amazon’s development partner, KTR Capital partners, acquired a 900,000-square-foot two-building complex in Woodbridge that it will renovate to suit Amazon. The Woodbridge facility was previously owned and occupied by C&S Wholesale Grocers, which relocated last year to Pennsylvania.  

On Wednesday, Amazon began online grocery service in Los Angeles. Reports are that it will quickly expand into northern California and then into around 20-40 urban markets.  It has operated the AmazonFresh produce delivery service for several years in Seattle, where Amazon is based.

Meanwhile in Jersey City, online grocer Peapod has pre-leased space at a cutting-edge distribution center going up now under the Pulaski Skyway. Peapod, operated by Stop & Shop, bills itself as the largest online grocer serving more than 8 million households in the Northeast, across New England, New Jersey and New York City.

in the last couple years, it has added more than 40 new communities, including the metro areas of Boston, Chicago, Hartford, Milwaukee, New Haven, Providence and Washington, D.C.; suburban New York City and communities in Connecticut, Indiana, Illinois, Maryland, Massachusetts, New Hampshire,  Rhode Island, Virginia and Wisconsin. The Skokie, Illinois-based company is a subsidiary of Royal Ahold in The Netherlands.

In what NAIOP recently recognized as a 2012 New Jersey “Deal of the Year”, Peapod pre-leased 345,000 square feet of the massive new Pulaski Distribution Center where ground was broken this spring.  The facility is expected to open in 2014.