Dive Brief:
- Albertsons announced late last week the launch of a same-day grocery delivery and pickup subscription program.
- Called Albertsons for U+, the subscription gives members the same benefits as the grocer’s existing free loyalty program along with unlimited delivery and pickup for $39 per year.
- Albertsons introduced this subscription at a time of change for the company as it looks to turn around its recent lackluster financial performance.
Dive Insight:
During its latest earnings call earlier this month, Albertsons’ comparable-store sales fell by just under 1% while net sales and other revenue declined 0.1%. However, digital sales rose 11% — a figure Albertsons seems to want to capitalize on.
The company’s new Albertsons for U+ subscription offers members unlimited free delivery on orders totaling more than $30, the option to upgrade to Flash rapid delivery for $2, free rapid Flash pickup in as soon as 30 minutes, and loyalty points that never expire, according to a press release.
The new subscription also provides members personalized deals, digital coupons, rewards, a birthday treat and a free monthly item, per the press release.
Albertsons confirmed that Albertsons for U+ will replace FreshPass, a subscription program the company debuted just over five years ago and cost $12.99 per month or $99 per year.
Albertsons’ executives told investors earlier this month that it intends to improve its financial performance by cutting expenses and simplifying its business. The grocer is also looking to lower prices, enhance the in-store experience, and increase traffic and market share, executives said during the company’s second-quarter earnings call.
