Albertsons Cos. Has a New E-Commerce Strategy

Albertsons Companies is discontinuing its own grocery delivery service in select locations and will begin using third-party services on Feb. 27.

Albertsons decided to move away from doing its own grocery delivery in Southern California and other areas in early December, according to Andrew Whelan, senior director, communications & public affairs for Albertsons.

"In early December, Albertsons Companies made the strategic decision to discontinue using our own home delivery fleet across a variety of market areas and states, beginning February 27, 2021," Whelan said. "Our HR teams are working to place all impacted associates in stores, plants, and distribution centers.

Whelan said the company will transition that portion of its e-commerce operations to third-party logistics providers who specialize in that service.

"While we know that this move will help us create a more efficient operation, it wasn’t a decision we made lightly or without a great deal of consideration," he said.

Whelan said the decision will allow Albertsons to compete in the growing home delivery market more effectively.

"Since the COVID-19 outbreak, our e-commerce business has risen to new heights and has become more strategically important to Albertsons Companies. Our goal is to truly make e-commerce a competitive advantage," he said.

Regarding the associates who are currently in these positions, Whelan said:

"While it’s too soon to speculate how many associates will ultimately accept positions, Albertsons Companies divisions plan to offer positions to each impacted associate interested in working in the divisions," he said. "All associates who stay in their current roles through the end of this transition but choose to leave may be eligible to receive severance benefits according to the company’s plan – we will work with them on their individual situation. We are also offering an incentive bonuses to associates in those positions who stay through February 27."

The news was first reported Monday by Knock.LA, which noted that many drivers for the Albertsons companies are union workers.

In early December, Albertsons banner Tom Thumb in Texas announced it planned to permanently lay off 97 drivers in the Dallas-Fort Worth area and shift to third-party delivery services.

Boise, Idaho-based Albertsons operates 2,252 retail stores with 1,725 pharmacies, 398 associated fuel centers, 22 dedicated distribution centers and 20 manufacturing facilities. The company’s stores predominantly operate under the banners Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street and Haggen. The company is No. 8 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in North America.