Albertsons Delivers to Salt Lake Consumers

Discussion
Aug 23, 2004
George Anderson

By George Anderson


Consumers in a couple dozen communities in the Salt Lake, Utah area will be
able to begin ordering groceries online for home delivery or store pickup from
Albertsons beginning on Wednesday.


Salt Lake represents the twelfth market Albertsons has opened up for its online
service. The grocer first tested its online model in 1999 in Seattle.


This new market represents a significant challenge for Albertsons following
the failure of previous online grocery operations to make it in the market.


Albertsons’ Utah area vice president, Frank Yaksitch, is confident of success.


Mr. Yaksitch told The Salt Lake Tribune that Albertsons has succeeded
in part by learning from others’ failures. Albertsons makes use of the store-pick
model to keep its costs down and offers the option of store pickup for a lesser
fee than home delivery.


“Albertsons.com will provide shoppers with flexibility to complement their
busy lifestyle,” he said. “With a 90-minute delivery window or the alternative
of picking up pre-ordered groceries at the store of their choice, our dot-com
service is a continuation of our promise to make our customers’ lives easier.”


Moderator’s Comment: How important is Albertsons.com
to promoting a competitive point of difference for Albertsons? How does Albertsons’
dot-com business stack up against other online grocers?


Does Smith’s Food & Drug know something Albertsons
doesn’t? The division of Kroger has no plans to start its own online business
in its Utah home. A company spokesperson, Marsha Gilford, said, “There have
been so many failures and there doesn’t seem to be a model that can last a long
time. We appreciate people experimenting, though.”
George Anderson – Moderator

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