We review the strong Q3 results at Albertsons, driven primarily by online and private label performance.
Growth picking up
For the quarter, sales increased by 1.9% to $14.1bn, with identical store sales growing by 2.7%. This is the strongest quarterly growth this year and was helped by the 34% increase in its online sales; both its online home delivery and Drive Up & Go pickup sales. During the quarter, Albertsons welcomed its new chief customer and digital officer, Chris Rupp, who will be responsible for accelerating the ecommerce business further. Private label growth also drove the improved performance, with penetration of its own brand sales reaching a new high of 25.6%.
Other initiatives helping it win
As part of its Just for U loyalty programme, the retailer saw an increased number of registrations and redemption of digital coupons, up by 25% and 31% respectively. As the retailer continues to invest in its stores and technology, it is able to respond to the evolving needs of shoppers and tap into key trends such as health and foodservice. As part of this, it announced that it would be terminating the subscription service for its Plated meal kits range and focusing on building a stronger presence in-store. By integrating it into its private label portfolio, it is well placed to expand the brand into other relevant categories.
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