Just a few months after announcing a partnership to provide branded meal kit offerings in club stores across the United States, Costco and Blue Apron have suspended their joint pilot program.
Blue Apron CEO Bradley Dickerson announced the news during the company’s third quarter earnings call, noting the suspension would be indefinite. In a press release sent earlier that same day, Blue Apron announced sweeping changes to the company’s strategy—including a 4 percent reduction in workforce.
“As the holiday period approaches, our presence in Costco locations has paused due to the seasonal cadence of their business,” said Dickerson, according to a MarketWatch report. “As we enter 2019, we are targeting to resume in Costco as well as expand into new retailers, leveraging lessons learned from our pilot, and evolving our product offerings to complement this environment.”
The collaboration between Blue Apron and Costco was first announced this May, just two months after the meal kit provider declared its intent to sell meal kits in retail stores.
Since its less-than-stellar IPO in June 2017, the meal kit maker has been struggling to regain a prominent space in the market.
What will this mean for Blue Apron’s strategy going forward? Deli Market News will continue to report.