Online business will account for 20% of the total business, and Albertsons may achieve 2-hour delivery

Due to the impact of the pandemic, online grocery in the United States achieved a leapfrog development in 2020, and retailers increased their e-commerce investment to cope with market development and changes in consumer demand.

Albertsons online business may account for 20%

Vivek Sankaran, the company's president and CEO , said that due to the impact of the pandemic , the company has increased its investment in e-commerce , and consumers are more enthusiastic about eating at home and buying products online , so the online grocery business may account for 20 % of total sales .

During the pandemic, Albertsons' online sales growth did not fall below 200% in any reported quarter . In fiscal 2020, the company achieved growth of 276%, 243% and 225% in the first, second and third quarters from the end of February to the beginning of December, respectively.

“ Our e-commerce business is growing rapidly , and we now have 1,400 locations with curbside pickup and delivery . We will have 1,800 locations by the end of the year, and we are targeting two-hour delivery in all our markets , ” Sankaran said.

The pandemic has accelerated consumers’ adoption of online grocery shopping , and now the online channel is a significant and growing component of Albertsons’ business, a change that occurred much earlier than the company and the industry expected.

Albertsons increases investment in MFC

In addition, Albertsons believes that increasing automation will help drive growth in its online business . Sankaran said MFC has the ability to reduce costs and make the online business profitable .

Currently , Albertsons has two micro fulfillment centers (MFCs) supplied by Takeoff Technologies in Safeway supermarkets in South San Francisco and San Jose, California, which have been operational since late 2019. Although the pandemic interrupted Albertsons’ MFC rollout plans, the company has learned more about the technology and now expects to launch an additional seven MFC facilities this year .

Albertsons' CEO said that although the epidemic has caused severe economic losses to many Americans, the United States seems to be emerging from the crisis and there is no absolute loss to household finances.

“ We’re selling more premium wines than ever because people are eating at home, and we’re selling more shellfish than ever,” Sankaran said. “ I think people have been enjoying higher quality food at home over the last few months , so once people have the money, there’s a continued desire to consume higher quality products . ”

Albertsons' strong food offering , growing portfolio of private-label brands , increasingly personalized promotions and continued productivity improvements will position the company well in the market .

Albertsons

Online Grocery

USA

Micro Distribution Center