albertsons supermarket
Post on 19-Jun-2015
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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
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