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Customized Albertsons Shopping Experience

Posted on: Thursday, 8 June 2006, 12:00 CDT

By Nancy Luna, The Orange County Register, Calif.

Jun. 6--Fullerton Albertsons shoppers from San Clemente to Santa Ana will gradually notice fresher produce, shelves stocked based on the needs of their neighborhood and product markdowns geared to a consumer's buying patterns.

Translation: More customization.

"One of the things we want to become better at is understanding the neighborhoods in which we serve, and doing right by those neighborhoods," said Pete Van Helden, Supervalu Inc.'s president of West Coast operations, including 49 Albertsons in Orange County.

In an interview Tuesday at a Fullerton store, the 28-year industry veteran, who started as box boy in Montana, talked about Supervalu's $9.7 billion acquisition last week of 1,100 Albertsons and what the takeover means for the busy Southern California shopper.

QUESTION: Since Supervalu is a national food supplier, does that mean lower prices at Albertsons?

ANSWER: Pricing is a reflection of the market and the reflection of cost. It's a complicated formula. How that plays out in the future, we will have to wait and see.

Q: So, no price war?

A: We're always going after the customer. We're all fighting for it. There are many strategies some can use. I can't sit here and tell you there will be a price war. I don't know. Tomorrow morning, I could open the newspaper, and somebody may declare war, and we would have to participate. It could happen. But, really we'd like to think of pricing as a broader component of value.

Q: Can you be more specific on new products in stores, including the private labels?

A: It's too early to say.

Q: Industry analysts say Albertsons is known as a "middle of the road" supermarket and it needs to find a niche to maintain market share. True?

A: I would say in this industry, the consumer is always in motion. And, yes, we have to change to understand the new needs and follow those needs. For example, one of the needs for the customer today is a larger focus on fresh products. We see more interest now in home meal replacement. We are responding to those needs.

Q: Earlier this year, Albertson's Inc. closed some poorly performing stores in Orange County. Any plans for more closures, or expansion?

A: We have about six stores to open this year in Southern California. And plans for seven remodels in California. (Two in Orange County.) And ongoing, we want to increase that. The acquisition of Albertsons had no effect on store closures. Those are evaluations we take all the time with stores to make sure they are still right for the neighborhood.

Q: This Fullerton store has a premium, high-end look. Is this the future look of all remodels?

A: There are elements that you will see. We've got the deli, the bakery, the produce all together on one side of the store. In our new prototype, you'll continue to see that. That's the element we like.

Q: Orange County is diverse. Will you make those shifts at every store?

A: I would say the former Albertsons was centralized. (But now) our merchandising team will be more focused than ever before in doing right by those (individual) neighborhoods.

Q: When will the customer see changes?

A: With 295 stores (in Southern California), it's not going to happen overnight. You will see it as we remodel stores. (But, stores that aren't remodeled will still see some customization, he added.)

Q: Tell me more about the Avenu program, where you swipe your Preferred Card at a kiosk to obtain product discounts?

A: It's a program that is coming to Orange County ... by the end of the year. You swipe your card (at a kiosk at the front of the store), and a list comes out, and if you choose to buy those products, you will automatically get the discount (at checkout.) It's very convenient.

Q: So it tailors discounts based on my shopping pattern?

A: Yes.

Q: What's the hardest part of customization?

A: It's not easy to manage. But we recognize the importance of it. And we will certainly work toward that.

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To see more of The Orange County Register, or to subscribe to the newspaper, go to http://www.ocregister.com.

Copyright (c) 2006, The Orange County Register, Calif.

Distributed by Knight Ridder/Tribune Business News.

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ABS,

Source: The Orange County Register

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