Less than half of one percent of Bashas' customers will be affected when the regional chain shuts down its home delivery service at the end of this month, due to high gas prices and declining sales, the retailer told Progressive Grocer.

Mike Proulx, president and c.o.o. said in a memo to employees the decision to discontinue the Groceries on the Go home delivery service, effective May 31, "was part of our plan to streamline our operations due to the current economic downturn. Operating expenses for this service - especially the cost of fuel - have increased dramatically, making it extremely difficult to offer this service at a reasonable fee. At the same time, customers are watching their pocketbooks; they're more willing to clip coupons and personally visit stores than pay a surcharge for home delivery service."

Bashas' will notify recent home delivery customers by direct mail piece that includes an offer to offset the bad news. "We're sending a direct mail piece to customers who have used the service within the past six months," said Kristy Nied, Bashas' dir. of communications and community affairs. "It has a coupon for $5 off an in-store purchase of $50 or more."

Those customers living in Lake Powell will still receive home - or rather - boat delivery from Bashas. "We will continue to operate our Groceries on the Go service to houseboats in Lake Powell, at the northern part of the state (near the Arizona/Utah border)," said Nied. "We have great demand for this service and have a separate delivery structure in place.