Albertsons has partnered with Instacart to launch an online market, O Organics Market, featuring products from its O Organics and Open Nature private brands.
Private brand powerhouse
The service has launched initially in San Francisco and Washington, DC, before potentially rolling-out to other cities. The service offers almost 3,800 items from the O Organics, Open Nature and other organic and natural brands through the Instacart platform. Following the acquisition of Safeway, Albertsons has become a private brands powerhouse, generating sales of over $11.5bn last year. This included sales of over $1bn for the O Organics brand. The portfolio spans almost all categories and range tiers. Recently it launched an ultra-premium brand, Signature Reserve.
500 new products to be added in 2018
The O Organics range currently consists of over 1,000 products, and following a significant increase in sales last year, the retailer plans to introduce 500 additional items in 2018. Albertsons manufactures many of the products, including yogurt, salsa, ice cream, milk, pasta sauce and sandwich bread. The high growth which the brand is achieving is in line with industry trends and reflects the success of other private brands in the market including Kroger’s Simple Truth Organic and Publix's Greenwise Organic.
Taking on Amazon
This initiative will also help Albertsons defend its space against the growing presence of Amazon in the natural and organic categories. Following the acquisition of Whole Foods Market, the retailer has made the 365 Everyday Value range available online. The roll-out of the Prime Now delivery service from the Whole Foods Market stores has also improved the accessibility of its ranges for online shoppers.
Builds on existing ecommerce services
Working with Instacart builds on the two companies’ existing relationship. Earlier this year, they started to offer same-day delivery across a range of the retailer’s banners. Albertsons has also been rolling out its click and collect proposition, Drive-up & Go, which helped to grow channel sales by 19% last year. Albertsons has also announced plans to launch an online marketplace which will feature products from smaller suppliers and products in long-tail categories.
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