Albertsons investing in grocery ecommerce

Date : 23 September 2016

Albertsons is rolling out a grocery ecommerce service across a number of its banners and markets.

Launching the service in a number of key markets

Albertsons is partnering with MyWebGrocer to offer the service across a number of its banners including Jewel-Osco, Shaw’s, United, ACME Market and Star Market. Working with MyWebGrocer will enable the retailer to ramp up the launch of click and collect and delivery options for customers across Chicago, New England, Philadelphia and West Texas markets. Albertsons has previously worked with MyWebGrocer to power its digital channel with shopping trip planning features and digital circular capabilities.

Competitors have been rolling out aggressively this year

As the second largest traditional grocery retailer in the US, with over 2,300 stores, this is an important development in the market. Grocery ecommerce has been expanding at pace this year, driven by Walmart and Kroger. Both retailers are on course to offer a click and collect service at over 400 locations each by the end of the year, making rapid progress from offering the service from only a small number of stores 12 months ago. A number of other retailers have also entered the channel or have ramped up their existing operations in 2016 through partnering with specialist companies such as Instacart, Deliv and Shipt.

Albertsons can leverage Safeway’s home delivery capabilities

Growing its ecommerce operations has been a key goal for Albertsons since it completed the acquisition of Safeway in early 2015. Although Safeway was one of the pioneers of the channel in the US, developing its initial proposition over 15 years ago, it has not aggressively expanded the service, keeping it focused on its markets in California, Portland and Washington. However, Albertsons has sought to tap into the retailer’s expertise in this area, and last month launched home delivery in the Denver market at both its Safeway and Albertsons stores. As with many other retailers, Albertsons is likely to continue expanding both ecommerce models (delivery and pickup), flexing its solution based on local customer needs, and its competitors’ models.

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