business news in context, analysis with attitude

Albertsons has announced the Washington, DC, and San Francisco launch of a virtual store, O organics Market, that will allow customers in those two markets to more easily access “ organic, natural, and other better-for-you foods, beverages, and grocery items.”

The announcement came just days before Albertsons released Q1 results that showed a same-store sales increase of just 0.2 percent, but e-commerce sales that were up 108 percent.

According to the announcement, “The initial launch of the service is in San Francisco and Washington, D.C., with the expectation of expanding to additional cities in the future. O Organics Market … deepens Albertsons Cos.’ commitment to expanding its digital footprint.”

The virtual store is powered by Instacart.

Shane Sampson, Albertsons’ Chief Marketing and Merchandising Officer, is quoted as saying that “with nearly 3,800 items from O Organics®, Open Nature™, and other organic and natural brands, O Organics Market is another important step in our strategy to deliver customers what they want, when they want it.”
KC's View:
I like this idea a lot, mostly because it points to something very important about the online shopping experience. Retailers can segment products any way they want, without worrying about cases and racks and gondolas. This is very smart of Albertsons, and they ought to be looking for other virtual stores that they can create.