business news in context, analysis with attitude

Forbes reports that in the wake of its failed merger with Rite Aid, "Albertsons has been quietly upping their online grocery game to take on the e-commerce market at a profit. Although the newsworthy merger didn’t work out, Albertsons executives still believe that partnerships are the best way to move the business forward."

“We really believe, that given the changing state of the market, it is really important to partner with key stakeholders,” says Kenji Gjovig, vice-president of eCommerce Marketing & Merchandising at Albertsons.

The story goes on: "In the past year, Albertsons has joined forces with not one but three digital players that they’re hoping will allow them to make their online grocery channel profitable. One of those partnerships is with BloomReach, a digital experience platform, using AI driven data to provide a better search experience for Albertsons’ online shoppers."

Another partner: "Quotient is providing opportunities for CPG partners to work with Albertsons, to direct the right shoppers to their branded landing pages, including shoppable locations that allow customers to add products directly to their cart."

And: "Through a partnership with Glympse, a location sharing technology, Albertsons is able to provide real-time status updates for customers’ delivery and pick up orders eliminating most of those calls."

However, "Despite their existing partnership with Instacart, intended to scale up their delivery efforts to cover around 2,000 stores, Albertsons has also launched their own branded delivery subscription program.  The subscription program started as a pilot in March of this year. Like most other delivery subscription services they offer monthly and annual memberships in a similar price range to Instacart and Shipt."
KC's View:
Partnerships are important, as ,long as they serve the retailer's brand. I'm glad to see that Albertsons is backing off the Instacart relationship, because serving the Albertsons brand is most assuredly not what Instacart is about.

If you are going to be a powerful retail brand, you have to own all facets of the consumer experience.