How Albertsons is evolving its upscale banners

Date : 01 March 2021

Stewart Samuel

Program Director - Canada

Last September, Albertsons opened the latest iteration of what it refers to internally as Pavilions 2.0, which features a new décor package for its upscale banner. We look at how fresh foods are being executed across three departments.

Remodeled store

The store, located in the Sherman Oaks neighborhood of Los Angeles, is an expanded version of an older Pavilions. This banner forms part of the ultra-premium group at Albertsons. Stores are located in affluent communities, feature a differentiated range of products and offer personal concierge services. In addition to the new décor, it has added square footage and ranges in deli, kosher, floral, and organics to bring these elements to life. A pharmacy was also added to the store in the remodel.

Source: IGD Research

The large produce department, offers a wider range and more artistic displays than typically seen in traditional supermarkets, including mushrooms grown on logs. This creates a great impression at the front of the store.

Source: IGD Research

Source: IGD Research

The store dedicates extensive space to its bakery offer. The patisserie includes strong messaging promoting “made from scratch” preparation, the use of natural ingredients and the availability of custom cakes. Colorful, elegant pastry assortments are a centerpiece of the department.

Source: IGD Research

The Butcher’s Block meat department and Ocean View seafood areas showcase the Pavilions 2.0 design scheme. Value-added meats and poultry are prominently displayed.

Source: IGD Research

Source: IGD Research

Elevated look and feel

These three departments highlight the elevated look and feel, and product offer, that can be found within this store. It also offers an expanded deli, food-to-go ranges and a strong convenience-led take-home offer. Wine and beer is one of the hero departments, offering an extensive range of products, including a wine cave with “vinter selections.” Although Pavilions is one of Albertsons’ upscale banners, within this store it has retained a good balance with mainstream ranges, ensuring that it has broad appeal within the catchment area.

Retail Analysis subscribers: log-in to see our detailed report, How Albertsons developed an ultra-premium format, including an overview of Albertsons’ format strategy and segmentation model, photo gallery and our assessment of the store.

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