Online grocer Farmstead is expanding to the Carolinas after inking a first-of-its-kind partnership with Southeast grocery company Alex Lee – the parent company of grocer Lowes Foods and grocery distributor Merchants Distributors (MDI). The partnership enables Farmstead and Alex Lee to expand their reach in complementary markets without the need to open any physical stores.
Farmstead got its start in the competitive San Francisco Bay Area. It stood out from other offerings by leveraging proprietary technology and a microhub model – delivery-centric warehouses that serve a 50-mile radius – to hone efficiency and reduce costs. As a result, Farmstead is growing quickly, with plans to expand nationwide to a primarily mid-market audience.