Albertsons News

Will Rite Aid be of much benefit to Albertsons?

Will Rite Aid be of much benefit to Albertsons?

After its Rite Aid mega-merger is completed later this year, Albertsons will have a whopping 4,900-plus locations nationwide, serving more than 40 million customers per week. Will Albertsons’ position be helped more by the addition of Rite Aid, private label expansion, further differentiation among banners or other taken by management?

Albertsons launches an online marketplace for small CPG brands

Albertsons launches an online marketplace for small CPG brands

Albertsons is looking to give small consumer packaged goods brands a boost, announcing the launch of a digital marketplace where smaller companies can sell and ship their food and over-the-counter wellness products directly to consumers. What value do you see in a digital marketplace for vendors and the Albertsons?

Albertsons and Rite Aid combine to create food, health and wellness giant

Albertsons and Rite Aid combine to create food, health and wellness giant

Albertsons and Rite Aid have announced a definitive merger agreement, thereby combining one of the largest supermarket chain store operators in the U.S. with the drugstore chain. What do you see as the positives and negatives of combining Albertsons Companies and Rite Aid?

Can Albertsons help brands hone their digital ads?

Can Albertsons help brands hone their digital ads?

Tying online advertising to in-store behavior isn’t easy, but Albertsons is working on it. The grocer is rolling out a solution for CPG brands that sell in its stores to give them feedback on how their digital ads are performing. Will Albertsons’ solution succeed in helping CPG brands improve sales in the grocer’s stores?

Albertsons buys its way into the meal kit business with Plated acquisition

Albertsons buys its way into the meal kit business with Plated acquisition

Albertsons Companies, the second largest operator of supermarkets in the U.S., announced yesterday that it has reached a deal to acquire Plated’s meal kit service. How will Albertsons’ acquisition of Plated affect its core business as well as that of the meal kit service?

Would Albertsons and Whole Foods make a good match?

The Financial Times reports that Cerberus Capital Management, the private equity group that controls Albertsons, has begun preliminary discussions with bankers about making a bid for Whole Foods. Would Albertsons’ approach to running its acquisitions work well for Whole Foods?

Can we finally let Webvan rest in peace?

Can we finally let Webvan rest in peace?

The ghost of Webvan has been banished forever. Today, some of the largest grocers in the country offer online sales with either on-site pickup and/or door-to-door delivery. How do you see the online grocery market developing over the next several years?

What is Albertsons (Safeway) doing in Florida?

Yesterday, the Tampa Bay Times reported that the Albertsons banner was being removed from the last three stores that carried it in the state. The strange thing is that, instead of just closing and selling off the locations, Albertsons Companies is reopening the stores as Safeway units. Does Safeway have a better chance of succeeding and expanding in Florida than Albertsons?

Will Albertsons sink or swim following its IPO?

Five months after Albertsons Companies, Inc., owned by a consortium led by Cerberus Capital, closed its deal to merge with Safeway and become the second largest supermarket chain operator in the U.S., it is planning an initial public offering. What will going public mean for Albertsons Companies Inc. and the chains it operates?

Haggen to get big in a hurry

One of the biggest retail stories to come out of the past holiday season was the announcement that Haggen, an 18-unit grocery chain with stores in Oregon and Washington, planned to acquire 146 stores from Albertsons and Safeway in Arizona, California and Nevada. What challenges do you see for Haggen as it expands?

Supervalu to leave grocery retailing to its customers

Back in March, Supervalu made clear that its focus going forward would be primarily on its wholesaling operations, which serve roughly 1,900 independently owned and operated stores. That commitment was reinforced by the company at its recent shareholder meeting when discussing its recent acquisition of 10 Rainbow Foods stores in the Twin Cities area from Roundy’s. Is Supervalu headed in the right direction with its focus on grocery wholesaling?

Albertsons reaches deal to acquire Safeway

One of the worst kept retail M&A secrets is now official. Safeway and Albertsons have announced an agreement under which AB Acquisition will acquire all of Safeway’s outstanding shares in a deal valued at $40 per share. How do you see the merger between Albertsons and Safeway affecting the U.S. grocery industry?

Are mid-week circulars better for supermarkets?

Kroger announced last week it was planning to standardize the release of its weekly ads online and across all its stores on Wednesdays. With the move, the chain apparently joins a quiet trend in the supermarket industry. What do you think is the best day for grocers to begin their weekly ad cycle?

Supervalu Shakeup – Investment Group to Buy Chains

Supervalu announced yesterday that it has agreed to sell its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market grocery chains along with its Osco and Sav-on in-store pharmacies to AB Acquisition LLC, an affiliate of a Cerberus Capital Management investor consortium. What do you think will happen with the chains and the new Supervalu following the deal?

RSR Research: Over-Promoted

There has been a flurry of news stories on pricing and promotions lately of which two stand out. One is about J.C. Penney’s return to “sale” terminology vs “best price.” The other is about Supervalu’s repositioning on price. What lessons can others learn from J.C. Penney’s and Supervalu’s pricing challenges?

BrainTrust Query: Self-Checkout – What Should Drive the Retailer Decision?

The self-checkout continues to be the subject of fierce debate within the retail community. The controversy is propelled by the multiple dimensions of the issue to retailers, manufacturers and shoppers. Do you believe self-checkouts undermine or support exceptional customer service?

To Self-Checkout or Not

From the very first moment that a self-checkout appeared, there has been a debate in retailing circles over the relative merits of traditional human-based checkouts versus systems where consumers handle their own transactions. Do you see the retail industry moving toward or away from self-checkouts?

Debating the Meaning of ‘Farmers’ Market’

Some supermarkets are selling fruits and vegetables in front of their doors and describing the events as a “farmers’ market.” That’s upsetting those who believe the term should be reserved for farmers selling directly to the public. Do you think it’s okay for grocers to use the words “farmers’ markets”?

Grocers Face Antitrust Suit in California

Albertsons, Ralphs and Vons must face an antitrust lawsuit over a pact the three competitors signed in 2003 to share profits if any one of the three were singled out by the United Food and Commercial Workers (UFCW) union for a strike in California, according to Bloomberg News. Do you think the companies engaged in anticompetitive behavior?

Albertsons Discovering Word Gets Around

Good news. Albertsons is cutting prices. The news has shown up in newspapers, on television, radio, websites, blogs… you name it. Bad news…consumers in markets such as Boise, Idaho have noticed that those same savings are not happening in their area. Do local market price changes work where information is so readily available through a variety of sources?

Save Mart Buys Albertsons Stores

Save Mart Supermarkets will be much bigger, about twice its current size, with the acquisition of 132 Albertsons stores in northern California and northern Nevada. Many of the stores involved in the deal are former Lucky supermarket locations and, while those units fared poorly after becoming Albertsons, at least one analyst sees a different scenario playing out this time around. What are you expecting from Save Mart’s acquisition 132 Albertsons?

Hot Food Trends: Part 1 – Fresh Presents Challenges to Center Store

Consumers equate fresh with quality and, as such, a trend is developing that will see a gradual replacement of processed and packaged items with “fresh counterparts,” according to Jarrett Paschel, Ph.D. writing for The Hartman Group. A consequence of the move from processed to fresh could be the decline of the traditional center store in grocery environments. How do you see the fresh food trend, identified by The Hartman Group, affecting grocers’ approach to center store?

Another Online Grocery Service Bites the Dust

The consortium led by the Cerberus Group that took part of the Albertsons chain private is closing down the company’s online grocery and home delivery service. Speculation is the supermarket chain took this step because it was simply not making money (or at least not enough) to justify continuing with the service. Does the value of online grocery and home delivery or store pickup services go beyond the actual dollars and cents profits these operations deliver to a supermarket’s bottom line?

Closings Pave the Way for Safeway

Safeway has reasons to be giddy. In the past year, it has reinvigorated its business with the rollout of its Lifestyle format and now it finds itself with an unexpected opportunity to grow sales and market share as a result of Albertsons LLC’s decision to shutter 100 stores in five states. Do you agree that Safeway has the potential to reap the greatest benefit from Albertsons’ store closings?

Safeway May Benefit From Albertsons’ Deal

Safeway has taken a fair amount of criticism over the years for its handling of chains it has acquired but, according to some, it may be the biggest beneficiary of a merger and acquisition deal it had nothing to do with. According to a report in the East Bay Business Times, Safeway’s stores in markets where Albertsons has stores may be able to take advantage of the normal transition stage that takes place during any change in ownership. Who other than those involved in the deal for Albertsons stand to benefit most from it?

Done Deal: Albertsons Sold

The second go-round proved a charm as Supervalu, CVS and an investment group led by Cerberus Capital Management, that includes Kimco Realty, Schottenstein Stores Corp., Lubert-Adler Partners and Klaff Realty, have announced a successful bid to acquire all of Albertsons’ holdings for $17.4 billion. What will this deal mean for Supervalu, CVS and the businesses they will eventually takeover from Albertsons?

Albertsons ‘For Sale’ Again

A report last week in the New York Post said that major shareholder anger over Albertsons’ decision to pass on a $15.7 billion bid for the company has it once again looking to start negotiations to sell its business. According to the report, a number of large hedge funds that own shares in the company have threatened to wage a proxy fight to remove board members at the next annual shareholders’ meeting if Albertsons doesn’t take action. What do you think is going on at the top levels of Albertsons?

Albertsons Says ‘No Sale’ for Entire Company

Albertsons announced that it is ending talks to sell the entire company after its Board of Directors decided it was not going to get the type of bid it was looking for to make a deal. The company did hold out the possibility that it would sell off undisclosed underperforming assets in a smaller transaction. Where does Albertsons go from here?

The New Owners of Albertsons Are…

A report in The Wall Street Journal says an investment group of Cerberus Capital Management, Kimco Realty and Supervalu will be announced as the winners of the bidding for Albertsons. What will it take to straighten out Albertsons’ grocery business and put it back on a growth path? What will the eventual winner(s) of the company’s drugstore business have facing them?

Supervalu Joins Albertsons’ Suitor List

According to a report in the Financial Times, Kroger is no longer in the running to buy Albertsons but now Supervalu has stepped up to join with Cerberus Capital Management and Kimco Realty to make an offer on the grocery and drugstore chain. Bids are said to be due today with a possible decision made on the deal this month. Does a deal for Albertsons involving Supervalu make sense for either company?

Kroger/Albertsons vs. Wal-Mart

If the rumors are true and Kroger’s bid for Albertsons eventually leads to a takeover of its grocery rival, then the stage will be set for the combined company to take on Wal-Mart. But, as many pointed out in a report in The Wall Street Journal, companies have found acquisitions often do little to improve performance. Would a deal to buy Albertsons be good for Kroger?

Behind Albertsons’ For Sale Sign

Albertsons is for sale but an actual deal being signed seems pretty far off, according to a piece in The Wall Street Journal. The article points out that while Albertsons has some attractive properties, such as its pharmacies and the Jewel-Osco, Acme and Shaw’s grocery chains, no one seems willing to swoop in and buy up the entire company. In fact, there are many parts of the company that many would just assume avoid. What impact do you think the news about a potential sale is having on Albertsons’ employees?

Playing Guess the Buyer – The Albertsons Edition

For those keeping score, Tesco, Carrefour, Delhaize, Wal-Mart and CVS are among the large international and domestic retail chains that have reportedly expressed some interest in acquiring all or part of Albertsons. A report from a U.K. publication called The Business, says Tesco has sent a team of executives to the U.S. to look for possible takeover targets including, but not limited to, Albertsons. What should any potential acquirer of the chain know about the company as whole and its various divisions?

Albertsons Considers Selling; Tesco and Others Consider Buying

On Friday, Albertsons released a statement from the company’s chairman and CEO, Larry Johnston, in which he said the retailer was “exploring strategic alternatives to increase shareholder value, including a possible sale of the company.” Company executives and large shareholders have, reportedly, been frustrated by the chain’s inability to maximize its stock price in the face of tough competition from Wal-Mart and others. What do you believe will be the likely result of Albertsons’ exploration of strategic alternatives for its business?

SoCal Supermarket Antitrust Case to Go Forward

California Attorney General Bill Lockyer is confident he can prove that Albertsons, Kroger and Safeway violated antitrust laws when the three signed a revenue-sharing agreement in anticipation of a United Food and Commercial Workers Union (UFCW) strike in Southern California in 2003. With yesterday’s ruling by a federal judge, Mr. Lockyer and his office will get the opportunity to make their case. Do you believe the revenue sharing agreement resulted in the chains being less aggressive competitively with one another, hurting consumers in the process?

Did the Chains Strike Out in SoCal?

When the Southern California grocery workers’ strike/lockout finally ended earlier this year, it was generally agreed that the chains had won the fight after squeezing wage and health benefit concessions from the United Food and Commercial Workers union. Today, coming up on the anniversary of the beginning of that strike/lockout, it’s clear that neither side won in Southern California. What is your 20/20 hindsight view of the Southern California grocery workers strike/lockout? What lessons should the chains and union have learned to avoid similar results elsewhere?

Albertsons Buys Into New Niche

Albertsons is going upscale. Yesterday, the company announced it purchased Bristol Farms, the 11-store gourmet grocery chain in Southern California. What do you expect Albertsons to do with Bristol Farms? What should it do?

Albertsons’ Rx Marketing Called Deceptive

Privacy Rights Clearinghouse (PRC), a San Diego-based consumer advocacy group, has filed a lawsuit against Albertsons accusing the company of “violating the privacy rights of thousands of its customers by illegally selling their confidential prescription information to drug companies.” If the charges are true, has Albertsons overstepped its authority and used personal shopper information in an improper manner? Will the lawsuit brought against Albertsons, regardless of how it turns out, erode the general level of confidence consumers have in the chain?

Albertsons Delivers to Salt Lake Consumers

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

Albertsons Looks To Make Impact With Price Format

Albertsons officially announced its entry into the limited-assortment (price impact) grocery store format with seven Super Saver stores to be opened in the Dallas and Baton Rouge markets. The stores will be operated as an autonomous division of Albertsons called Extreme Inc. What are your thoughts on the prospects for Albertsons new limited-assortment Super Saver grocery business? What will it need to do if it is to be successful?

Recalls To Cost More At Albertsons

Albertsons says the cost of taking product off store shelves whenever there is a product recall has become too high and from now on manufacturers are going to have to pay. A report in the Tallahassee (Fla.) Democrat, says Albertsons has decided to take this action having seen a substantial increase in product recalls over the past several years. What are your thoughts on retailers charging suppliers for removing products from shelves when an item is recalled?

Under and Overpaid In Seattle

According to the United Food and Commercial Workers Union (UFCW), the average grocery worker in the Puget Sound area makes $18,000 a year. The amount paid to the chief executive of Albertsons, Larry Johnston, is considerably more — 911 times more to be exact, reports the Seattle Times. Does an executive’s compensation have an impact on the morale and performance of company employees? Are retailers (union and non-union) setting themselves up for major labor strife because of the perceived disparity in compensation paid to top executives and rank and file employees?

Albertsons: Testing To See What Sells

Albertsons may be seeking to attract a different customer than Wal-Mart but that’s little consolation for the grocer as it continues to see business siphoned-off by Supercenters and Neighborhood Markets. Has Albertsons made itself more competitive with the changes it has made over the past couple of years? What impresses you most about what Albertsons has done and what has left you scratching your head?

Grocer and Volunteers Deliver To Those In Need

As the sign on the church secretary’s desk used to read, “Working here doesn’t pay much but the benefits are out of this world.” People at the Albertsons Food and Drug in Greeley, Colo. and the Weld Country Retired and Senior Volunteer Program (RSVP) have demonstrated they understand this concept. Will partnership services such as that between Albertsons and RSVP become more common as the population ages? What impact will the growing number of elderly have on supermarket and other retail channel operations?

Self-Service Better Than No Service

A column by Amy Culbertson in the Star Telegram asks and then answers the burning question about the new Shop ‘n’ Scan system being used by Albertsons in the Dallas-Fort Worth market. Has the level of customer service in retail, particularly supermarkets, gotten so bad that even the technologically phobic will prefer to do it themselves (scanning, bagging, etc.) rather than deal with store employees?

Consumers Shop ‘n’ Scan

A piece in the Dallas Morning News says Albertsons “is taking supermarket self-checkout to the next level by introducing handheld scanners that shoppers can use as they move up and down the aisles, bagging their groceries as they go.” What are your thoughts on Albertsons introducing the Shop ‘n’ Scan self-checkout system in its stores in Dallas?

Albertsons Buys Shaw’s and Star Markets

Albertsons has announced that it has agreed on a deal with Britain’s J Sainsbury to buy the Shaw’s and Star Market supermarket chains for $2.457 billion. What are your thoughts on Albertsons acquisition of Shaw’s and Star Markets from J Sainsbury?

Albertsons Looks To Make Impact With Changes

The grocery and drugstore chain is reducing the number of divisions within the company from 11 to seven by combining its Southwest, Intermountain, Northwest and Rocky Mountain units into a new Intermountain Division headquartered in Boise, Idaho. What are your thoughts on the intended moves announced by Albertsons?

Albertsons: Heck No, We Won’t Go

Larry Johnston, chairman, chief executive officer and president of Albertsons, does not care what’s being said in grocery industry and analyst circles. The chain is staying put in Dallas-Fort Worth and it is taking the steps it deems necessary to set the division back on the course to increased market share and profits. Why has Albertsons lost its lead in the Dallas-Fort Worth market to Wal-Mart? What will it take for the grocery chain to reclaim the top spot?

Gentiles Go Kosher

Sales of kosher foods are hot and non-Jewish consumers are the ones driving much of the increase. A report on the CBS MarketWatch Web site says dollar sales of kosher foods are growing at a 15 percent annual rate, with total sales now moving beyond the $7.5 billion mark. Based on its growth outside the Jewish community, do kosher food sections make sense in stores that serve non-Jewish communities? How will stores with the existing kosher foods section deal with their placement and merchandising as more mainstream manufacturers have products certified as kosher and pareve?