ByPeddini Sobha

Rani(MBA,

MRM) AU

Introduction to Albertson’s

North American grocery company based in Boise, Idaho

More than 200 stores in 7 States

Albertson’s is the part of Supervalu family of stores

Headquarters : Boise, Idaho

"You've got to give the customer the merchandise they want, at a

price they can afford, complete with lots of tender, loving care." - Joe

Albertson.

7

“Joe's philosophy was, whatever you do, take care of the

customer, because she's the one who is going to make us

successful,”

Warm, people-oriented leader with a hearty helping sense

and had strong interest in providing new and interesting

services that distinguished his stores and made the

experience more exciting for his shoppers

“To compete, we offered a whole list of firsts for the

store,” “The first scratch bakery in the area, the first

magazine rack, the first hot roasted nut machine, an

automatic doughnut machine and a popcorn machine. And

we also made our own ice cream.”

Before opening his own store, Albertson had worked for

Pleasanton, Calif.-based Safeway for 12 years, helping that

chain expand in Kansas

Joseph Albertson

History

• In 1939, Joe Albertson and partners L.S. Skaggs and Tom

Cuthbert opened their first one-stop shopping market, which

they named Albertson’s Food Center, in Boise, Idaho

• By 1945, Joe Albertson incorporated the store and expanded it

into Montana, Oregon, Utah and Washington, and the company

eventually went public.

• Remarkable changes in 1964, 1976, 1979

• To gain Federal Trade Commission approval, the company

agreed to divest 145 stores and four store sites in overlapping

markets in California, Nevada and New Mexico. This was

believed to be the largest retail-merger divestiture ever

• Succumbing to competition, Albertsons’s sold itself to

SUPERVALU in 2006, and has continued to reduce in size. There

are now about 200 stores left in U.S

First Albertson’s Store at Boise

SUPERVALU® is a leader in the grocery retailing industry

History: In 1870, Hugh G. Harrison provided the seed money for

B.S. Bull and Company, a dry goods wholesaler.

In 1926, these kindred companies joined to form Winston and

Newell Company, the direct parent of SUPERVALU®.

In 2006 SUPERVALU acquired the premier retail properties of

ALBERTSONS®. This combination propelled the company to the

position of third-largest grocery retailing company in the U.S.

Today, SUPERVALU is one of the largest companies in the U.S.

grocery channel with approximately 130,000 employees and fiscal

2012 annual sales of approximately $36.1 billion.

Other Grocery Retails of Supervalu

Save-a-lot – 1,280 Stores

Jewel Osco ---- 182 stores

Shaw’s and Star market – 169 stores

ACME --- 117 Stores

Shoppers ---- 56 stores

CUM --- 46 Stores

Farm fresh --- 43 Stores

shop n save -- 42 Stores

Hornbacher’s --- 6stores

Lucky ---- 4 stores

Departments and Services of Albertson’s

Deli : Provides wide range of food items like Ready to eat foods,

specialty cheeses, party trays, etc

Bakery: Cakes, desserts, etc

Gift cards and floral: Farm fresh flowers delivered nationwide, on

order

Total Photo: Creating cards, albums , frames ,etc with photos

Meat: Food items made from meat are available

Sea food: various items of seafood filled menu

Fresh Produce: Fruits grown under strict agricultural standards

Natural & organic: Products from Wild harvest brand

Beer, wine and spirit

Private Brands of Albertsons

Objectives

"You've got to give the customer the merchandise they

want, at a price they can afford, complete with lots of tender,

loving care."

“Whatever you do, take care of the customer, because she's

the one who is going to make us successful”

- Joe Albertson

Albertson's has created some positive effects within it's value chain. It has recognized that it is important to keep prices as low as possible. To achieve this:

Arranged consolidate distribution centers. Using the web to coordinate shipments and reduce

billing & invoicing costsUpgraded several IT systems including its financial and

human resource softwareUse of RFID tags on product shipments has also helped

to decrease their costs.

The main element of the Company’s strategy is to better match the

offerings and experience of each store to its surrounding community,

what is referred to as “hyperlocal retailing.” Each store director has

been given more authority over the items they display and promote

so their store better reflects the neighborhood preferences and

creates a more relevant in-store experience for customers.

Strategies of Albertsons

SWORT ANALYSIS

Web Coordinated shipments

Use of RFID tags

Automated Check outs

Continuous updates to the supply chain help them to reduce costs and earn

higher profits on their sales.

Due to the extended services Albertson's offers such as a butcher, baker,

and gourmet coffee bars, they are able to outperform Wal-mart, its biggest

competitor, in urban areas

Information systems plays a very significant role in Albertson's business

strategy. From corporate office functions to customer interactions, they are

committing to providing leading edge technology.

Hiring some of the smartest, experienced people in the industry

It achieves success in urban areas where Wal-mart is unable to place its

huge “box” store, while Albertson provide smaller stores

Strengths

weakness

Out-dated transmission of information & orders to suppliers.

Albertson's main competitor is Wal-mart. The biggest component

in this rivalry is product cost and price. Because of their superior

supply chain and extreme buying power, Wal-mart is able to sell at

lower prices and obtain higher profit margins.

In the future, Albertson's will obtain success from their

relentless efforts in upgrading IT systems in every area of

the company

As it is in the hands of the Supervalu family, a new

administration, it can get rapid changes and

experimentations which helps further in rank

improvement

opportunities

threats

Wal-mart constantly reducing its prices and becoming

low cost provider

Capture of Albertsons market by the competitors

Severe Outsourcing of the business, which may

sometimes lead to total insolvency

SOCIAL Practice

Conducts Health camps, inside and outside the stores

With the support of local governing bodies, uptakes health

related programmes like 5k run

Pets are also their customers. They conduct health checkup

walk-ins.

Updates food menu time to time with new recipes

Offering weakly savings

Customers & their owners lined up early— at Albertsons for annual short clinic (pets)

5k walk..

Thank YouBy Peddini Sobha RaniMBA (MRM)Under the Guidence of Prof. D.Lalitha Rani