Retailer of the Year/Food Industry Hall of Fame

From page 66 we have grown into a solid regional supermarket chain with growing sales. I believe we can be successful again.”

He was right.

The company has grown from a low of about 200 stores to nearly 2,300 in 35 states and the District of Columbia. It has grown primarily through acquisition in recent years, the biggest being the acquisition of Safeway—where Joe Albertson started his career—that was completed Jan. 30, 2015.

“This is a transformative day for both Albertsons and Safeway,” Miller said. “This merger creates a unified, strong organization that is dedicated to bringing a better shopping experience to more customers across the country. Our combined geographic footprint, vast range of brands and products, and service-oriented staff will enable us to meet evolving shopping preferences.” The merger created a company with 2,230 stores, 27 distribution facilities, 19 manufacturing plants and more than 250,000 employees.

As Miller explained in his interview for this article, integrating the Safeway stores into the Albertsons organization in terms of store systems and physical plants has been a capital- and labor-intensive process that just came to a conclusion in September. Concurrently, Miller decided to become chairman only, giving Jim Donald—who had been serving in the president and COO role since March—the CEO job. Another “distraction” was removed from Albertsons in August when it and Rite Aid Corp. mutually agreed to end their merger efforts, despite the cost synergies and revenue opportunities that were expected from the combination.

So, Albertsons is hitting on all cylinders now, Miller believes.

The company plans to continue to grow through both acquisition and new store openings.

Miller says prototype stores are planned across the company’s markets. Most will resemble the Market Street format that Albertsons gained when it purchased the United Family of Stores in Texas in 2013 (see an example on page 74). These stores have a strong foodservice component, strong perishables and focus on service.

Albertsons also is expending capital and manpower around how to improve the checkout process in its stores, recognizing that it needs to be faster and more efficient.

While its e-commerce grew 108 percent year-over-year in the first quarter and 113 percent YoY in the second quarter, the chain continues to focus on how to do that part of its business better, Miller says.

It’s making sure its Own Brands product lines are a focus, adding more than 1,100 new items this year.

It’s fine-tuning its hiring and training processes to improve turnover and employee satisfaction, too.

All this, in addition to making sure to support its communities through the Albertsons Cos. Foundation, which in 2017 alone gave $300 million toward hunger relief, education, cancer research and treatment, programs for people with disabilities and veterans outreach in the communities where its stores operate.

“The operational improvements we are making to meet our customers’ needs are driving our improved results,” Albertsons said in August when announcing the Rite Aid deal’s end. “We are confident that our 275,000 dedicated employees will continue to execute on our business plan to enhance our customers’ experiences and lead the grocery industry with new innovations.”

Please see page 74