Albertsons is launching an online marketplace which will feature products from smaller suppliers and an extended range of products in long-tail categories.
Expand range of smaller, challenger brands
The launch of the marketplace will enable Albertsons to significantly expand the range of products that it offers. It will initially focus on smaller, niche brands which are growing in popularity, especially with younger shoppers. The marketplace will initially operate as a standalone presence, before being integrated into the broader Albertsons ecosystem. Suppliers will be expected to ship the products directly to customers, although in the future, Albertsons may look to manage this.
Optimise data to identify winning products
This move enables Albertsons to boost its offering in key segments and enables brands which may be too small initially to gain space within its stores to build awareness and distribution. It will also enable Albertsons to quickly identify innovative products and emerging trends through analysing data and introduce them into its relevant banners.
On the digital front-foot
This is the latest of several digitally-related initiatives from Albertsons as part of its focus on understanding how customers think about food and the role of personalised deals, recipes, delivery and store pickup. Earlier this year it launched Albertsons Performance Media to help national brand owners to better understand the impact of their digital ads on sales, both online and in-store. The retailer has also announced a new partnership with Instacart for ecommerce delivery and introduced Plated meal kits into its stores following the acquisition of the business last year.
Source: IGD Research
Busy year ahead as it sets to merge with Rite Aid
There is unlikely to be any slowdown in activity in the business this year having announced plans to merge with Rite Aid, the third largest drugstore operator in the US. This will enable it to create an integrated health and wellness proposition and offer same-day convenience across food and health and wellness. The merger is expected to close in the second half of 2018.
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Stewart Samuel, Program Director, IGD Canada: based in Canada, Stewart heads up all of IGD's research and coverage on Albertsons. He is also responsible for shaping IGD's research program across North America. Contact Stewart at [email protected] for further insight on the region's markets, channels and retailers. Follow Stewart on Twitter: @Stewart_IGD