2021 Albertsons ROY

The Shelby Report of the Southwest

Associates praised for their perseverance and dedication

Southern Division boasts 148 stores, three banners

by Eric Pereira / staff writer

There are 16,500 associates in the Southern Division of Albertsons Cos. and each one has a story. For some, the grocery store where they work will serve as a stepping stone, for others, it’s the beginning of a promising future.

“Those associates come from everywhere,” said Southern Division President Wes Jackson. “Some are in high school and college, getting their education, maybe even going into trade school to become what they want to become.”

Some may be working a part-time job on the side to earn some extra cash, while others may be coming to the U.S. with high aspirations of starting a new life.

“The supermarket is just a great place for a first job or a part-time job to support that effort,” Jackson said. “Flexible schedule, open early to late seven days a week. So you can pretty well work around any schedule there.”

Flexibility would be an understatement for what all associates have endured over the past 15 months. They have persevered through five major hurricanes, a snowstorm and global pandemic.

There are 148 stores across three banners within the Arlington, Texas-headquartered Southern Division – Albertsons, Tom Thumb and Randalls. Jackson said they had as many as 19,000 associates during the peak times of the COVID-19 pandemic last year. And their efforts were key to the company being named The Shelby Report of the Southwest’s 2021 Retailer of the Year.

“What we've seen in the last year specifically is career changing. The pandemic was good for some industries, terrible for some other industries,” he said. “We've seen a shift from some other industries into our industry. And some of those are staying because of the opportunities and the flexibility there.”

Some employees in the Southern Division may have retired from previous careers but want to remain active and interact with people.

“I'd say probably, the common thread is you'd have to like the people,” Jackson said. “If you don't like people, you're going to the wrong place. Because we're surrounded by

people serving a lot of guests every day and working with a lot of other people.”

To him, one of the reasons the division draws in associates is the unlimited opportunities at store level.

Jackson started off as a bagger, PR and Communications Director Christy Lara was a cashier and Tom Nelson, SVP of operations, began as a courtesy clerk.

Store associates throughout the division can pursue similar paths through the Store Leadership Program. About 20 candidates per enrollment go through extensive training for higher-level positions like store directors.

Lara also mentioned another career development opportunity for associates – the Retail Management Certification Program. Completing it provides the learner with a certificate that provides college credits.

“That certificate program ties very nicely together with the Food Sales Association and raising funds for employees that work in your stores for college tuition,” she said.

Jackson views the various jobs offered at Albertsons Cos. as a reason so many people are entering the grocery industry.

“So a ton of opportunities within the store, you become a store director, or maybe one of 200 division support jobs, such as a department specialist, you may end up leading a group of 20 as a center store or bakery operations, and then growing up to be the district manager,” Jackson said.

Of the current 16,500 associates, Jackson said 21 percent has been with the division 10 years or longer.

“We definitely had milestones – plenty of 20-year, 30-year, 40-year, even some 50-year [associates], if you can believe that,” he said.

Multiple generations get involved as well, from fathers and sons to husbands and wives.

A recipient of The Shelby Report’s Diversity, Equity and Inclusion Award in 2021, the company as a whole pushes for a culture of inclusion and belonging. Lara said the grocer recently launched associate resource groups both nationally and within the division.

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Associates From page 29

That includes the Women's Inspiration and Inclusion Network, the Pride Alliance Network, the Albertsons African American Leadership Council, the Hispanic Network, and also the Asian Network.

“Those associate resource groups are really critical in helping identify talent and helping mentor talent as well,” Lara said.

Added Jackson, “I’m most proud of our associates and for the way they continued and persevered through arguably the most challenging unique year in our lifetimes.”

Nelson expressed the same sentiment as associates braved whatever weather or pandemic condition was in front of them and pushed forward.

“The key for me is it's an opportunity to recognize the efforts of our teams and everybody that contributed to our success in the last year. We could not have done this without every one of our associates, every one of our stores, the distribution center and here

at this office – just doing some incredible stuff over the last year,” Nelson said.

“There are people who had just tremendous difficulties at home or

personally, it was not only the pandemic…we've had just story after story of extraordinary above and beyond efforts by our team, by our employees, to take care of a customer, to help fill a shelf, to help stay in business and serve our communities. For me, [this] is the ultimate recognition of our people and our team and what they do every day, working hard in the stores.”

Photo by O. Rufus Lovett

Store facelifts enhance guest experience

E-commerce sites, floral program also appearing

by Eric Pereira / staff writer

In 2020, Albertsons Cos. Southern Division, based in Arlington, Texas, remodeled 25 of its Tom Thumb, Randalls and Albertsons locations. In 2021, it will add another 12 e-commerce locations, roll out a new FTD floral program in 51 stores and has at least 15 planned additional renovations.

“Store remodels are a critical part of our continuous effort to keep our stores and facilities up to date for our guests,” said Southern Division President Wes Jackson. “Enhancing the guest experience in our stores is not a ‘one-and-done’ task, but something we are working on consistently.”

With the remodels, Jackson said guests will notice enhanced merchandising capabilities and emerging categories and products and solutions weaved throughout – all with a new look and feel.

“Last but not least, guests will notice we’ve taken the opportunity to implement greater energy efficiency with solutions such as new cases, new LED lights and more

efficient refrigeration,” he added. Shoppers’ needs are ever evolving and Albertsons Cos. Southern Division, The Shelby Report of the Southwest’s 2021 Retailer of the Year, continues to do the same to meet them.

“Guests will notice more of the products they love plus new products and solutions and categories that are emerging,” Jackson said.

Energy efficiency is another value-added component, showcasing a commitment to social responsibility. With products among the five key areas of focus, the division’s sales teams are constantly on the lookout for local items.

“We share this openly with our suppliers. There is a great example from our most recent new store opening in Deep Ellum, Dallas, Texas, which has more than 100 beers from local breweries,” Jackson said. “When it comes to slotting, we make exceptions for great local items and our willingness to give that new product a shot results in guests seeing local products.”

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facelifts From page 34

Although the stores have extensive in-person options, the division is well aware it also has to offer an omni channel experience, regardless of the pandemic.

“There are so many channels available to communicate with guests and we are planning to more fully utilize more of those channels,” Jackson said. “In our industry’s history, there was a time when all consumers received communication from their local grocer through one channel: the [newspaper] ad.”

He spoke to how today’s consumers can receive communication from their favorite grocer in a variety of ways.

“We are evolving…not only in the channels we are using but in the messages we are sending,” he said. “Our message to our guests is that your store experience matters to us and we are hyper-focused on providing quality, value and differentiation when it comes to what matters most to our guests.

“Our merchandising decisions, both now and into the future, are centered around the guest and particularly around building great value long term for our guests.”

Some of that value can be found in the FTD floral program, where guests can find arrangements for nearly any occasion.

“In the markets we operate in, a huge area of opportunity was identified, since these trade areas have largely been under-served in FTD floral business,” Jackson said. “Upon the initial launch of this program in more than 50 of our locations, the program exceeded our own expectations by far. And we now have plans to roll out an additional 45 locations.”

The store renovations and new merchandising attest to the division’s continued focus on serving customers and future growth and innovation. Albertsons Cos. reported 16.9 percent overall growth in identical store sales in 2020.

“Albertsons, Tom Thumb, and Randalls banners are recognized and valuable in their markets and we plan to continue to support and grow each of these brands,” Jackson said of the division’s three banners. “We see the value in building on that brand equity.”

“The store is our stage, the products our props and the people – our friendly associates and loyal customers – are the main event. Remodels are our way of ensuring we have set the stage for an incredible guest experience.”

Push for sustainability is taking many forms

by Eric Pereira / staff writer

As consumers browse the aisles of Albertsons Co. Southern Division’s stores, they likely will notice more products are sourced sustainably and have Earth-friendlier packaging. Within the division and beyond, the company also is pushing for new strategies in its private label, according to Southern Division President Wes Jackson.

“Our Own Brands product teams and environmental, social, governance teams continue to engage with our suppliers on new opportunities for innovation and impact within our portfolio,” he said. “They are continuing to gain better clarity of our product specs and labeling requirements (such as How2Recycle) to ensure that our products will meet our ambitious goals and policies. Our Plastic Pledge is just one example of this.”

Products that help customers start and end their day are reaching sustainability goals.

Albertsons Cos.’ O Organics coffee is 100 percent certified sustainable by Fair Trade USA, meeting the Sustainable Coffee Challenge commitment. With each cup consumers drink, they’re helping farmers and the environment.

In April, Albertsons Cos. introduced Kalyana sustainable wines to its growing lineup of sustainable Own Brands offerings.

“Kalyana wines are crafted from select vineyards and grapes grown in California’s Central Coast,” per an article from The Shelby Report. “Both the vineyards and the winery are certified sustainable by the Certified California Sustainable Winegrowing Alliance.”

In the company’s manufacturing operations, it has light-weighting initiatives that reduce the amount of plastic used to make products, such as water bottles and milk jugs.

“Our teams engineered a milk jug that uses about 10 percent less plastic than the previous design,” according to the Plastics Pledge. “That’s enough plastic to reduce resin usage by the equivalent of 13 million jugs per year. We also reduce our use of virgin plastic and create an end-market for recycled plastics by introducing recycled content into items, such as our O Organics lettuce containers.”

In the prepped meals department, 100 percent

of Albertsons Co. stores’ prepared sushi aligns with the company’s Responsible Seafood Policy, per another article from The Shelby Report

Adopted in 2018, the “Top 5 by 2022” Sushi Commitment set a goal for Albertsons to transition salmon, tuna, shrimp and imitation crab to sources that meet the Responsible Seafood Policy within five years. As part of the sushi commitment, the company also pledged to discontinue eel until sustainable sources become available, which was achieved in 2019.

Currently, all salmon, tuna, shrimp and imitation crab used in sushi must meet one of the following criteria from Albertsons Cos. Responsible Seafood Policy: Rated Green (best choice) or Yellow (good alternative) by the Monterey Bay Aquarium’s Seafood Watch program; certified to an equivalent environmental standard; or sourced from fisheries or farms making measurable and time-bound improvements.

In 2021, Albertsons Cos. announced via The Shelby Report that it had joined the Beyond the Bag Initiative. Launched by the Consortium to Reinvent the Retail Bag, it is a multiyear collaboration across retail sectors that aims to identify, test and implement innovative new design solutions that serve the function of today’s single-use plastic retail bag.

Over the next few years, Albertsons Cos. will continue to work on its own initiatives as well as collaborate with Consortium Partners to provide solutions for how to transport groceries in a convenient yet more sustainable way. The consortium includes the three founding partners – CVS Health, Target and Walmart – as well as Kroger, DICK’s Sporting Goods, Hy-Vee, Meijer and Walgreens.

On a greater scale of plastics and packaging, Albertsons Cos. has made a plastic waste reduction pledge to advance sustainability throughout the company, starting

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Serving the community, one shopper at a time

by Eric Pereira / staff writer

The grocery business is not an easy profession. Unforeseen circumstances can pile up, sending communities into a downward spiral. Grocery stores can also serve as a pillar of hope as well.

Albertsons Cos. Southern Division faced a daunting challenge over the past 15 months mostly due to the COVID-19 pandemic. However, the Tom Thumb, Randall’s and Albertsons banners in 148 stores across Dallas/Fort Worth, Austin, Houston, Texas, and Louisiana faced additional extremities.

Texas had an added catastrophe as a result of a snowstorm in February that killed several people and pushed residents’ basic needs to new extremes. There also was a record hurricane season in 2020 – five major hurricanes causing mass destruction and fatalities in Houston and Louisiana.

“No power in the city, no water in the city, but we were open for business to serve those communities,” said Wes Jackson, Southern Division president.

This, however, only illustrated the resilience of the company’s associates.

“A 100-year storm that basically took out our entire trade area,” Jackson said. “And not just for a day…people without power and water for five days…some of our stores as well. But we were open for business. And it's not about the business. It's about serving the needs of the community, the stores that were open, there was a need, there was definitely a need.”

Tom Nelson, Southern Division SVP of operations, said their stores often were the only stores operating.

“I can't emphasize it enough, our people who were facing extraordinary hardship at their own home in many cases, no food, no electricity, no running water,” he said. “Yet they're still coming in, helping put food on the shelf and check out customers and take care of the community. During this incredible snowstorm. I tell you, nothing short of spectacular as far as our people are concerned.

“And for us, it's all about being able to continue to give back to the

community and strengthen that bond between what we do and what our people do to really feed our neighborhoods and our communities.”

Bill Neve, Southern Division SVP of marketing and merchandising, spoke to the importance of vendor partnerships during a storm such as this. “Their support is critical in helping us get the shelves restocked,” he said.

Discussing out-of-stock situations, Nelson said it was a “phenomenal effort across the board” to keep shelves full as much as possible. Customers were stocking up ahead of the winter storm before it hit.

“During the [winter] storm, when electricity was out for an extended

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Wes Jackson

Tom Nelson

Bill Neve

period of time, there was a tremendous need for fresh foods. Then once we get electricity back, [we had] to restock –restock your freezers, restock your refrigerator, things like that…we partnered with other distribution centers – including our distribution center in Denver, for instance, our distribution center in Tolleson, Arizona – that typically serve other divisions to help resupply our division,” he said.

“And it was just a tremendous team effort, where we had drivers that were doing not only the work to take care of their own division, but stepping up and working the extra hours to make the runs over here into Texas and Louisiana as well and help

restock our stores and take care of our communities. Total company effort there to get restocked, as well as vendors and suppliers doing just extraordinary things.”

The longing to be there for the community further speaks to how the Southern Division does its part to extend a helping hand beyond store walls.

In 2020, the Albertsons Companies Foundation launched the Nourishing Neighbors initiative to eradicate hunger in the U.S. Nelson said it was created in direct response to the pandemic.

“In this division with our 148 stores, we were able to donate $3.5 million for food security. And that helped feed 14 million meals to half a million people,” he said.

Nelson sees it continue to make a phenomenal impact on communities and extend into 2021.

The initiative has also raised $600,000 to provide food and water to Texas residents affected by the winter storm.

In regard to the pandemic, Albertsons Cos. in March reported its pharmacies had administered more than 1 million doses of COVID-19 vaccine.

No matter the scenario, the Southern Division will be prepared to adapt and serve.

“We were open longer, sooner than any of our competitors, period – and in every area. And we have some really strong competitors,” Jackson said.

Sustainability From page 40

with their operations and extensive Own Brands portfolio.

Furthermore, The Shelby Report recently reported that Albertsons Cos. has made a commitment to the Science Based Targets initiative (SBTi) and will set an emissions reduction target that supports the goals of the United Nations’ Paris Agreement to reduce carbon emissions. Its emissions reduction goal will align with standards that are designed to ensure a better future and to prevent the worst impacts of climate change.or farms making measurable and timebound improvements.

At a Glance

Albertsons Cos.’ Plastics and Packaging Pledge:

▶ Achieve even greater sustainability of Own Brands product packaging by ensuring that 100 percent of packaging will be recyclable, reusable or industrially compostable by 2025.

▶ Decrease plastic usage, with an emphasis on single-use plastics.

▶ Own Brands plastic packaging will include 20 percent recycled content by 2025.

▶ Recycle operational (non-consumer facing) plastics for use in new retail, industrial and/or consumer items.

▶ Provide clear recycling communications on Own Brands product packaging, including the use of QR codes, by 2022. The company is working with How2Recycle to standardize its labeling system and improve the reliability, completeness and transparency of recyclability claims.

▶ Source and share industry best practices with other members of the Sustainable Packaging Coalition, a 250-company collaborative of retailers, manufacturers, governments and education institutions focused on strengthening and advancing the business case for sustainable packaging.

E-commerce expansion is keeping division competitive

by Eric Pereira / staff writer

Albertsons Cos. made many investments in the Southern Division in 2020, including an additional 82 e-commerce locations.

Pursuing the tech initiative has been fruitful as the company-wide digital sales growth was 258 percent last year. In 2021, it is adding another 12 e-commerce locations.

“The strategy behind that really was about giving our customers what they want…what they really want is what we call an omnichannel experience,” said Southern Division SVP of Operations Tom Nelson. “They want to be able to shop when they want, where they want, how they want.”

Albertsons Co. wants customers to have the in-store experience but also be able to have their groceries just a few clicks away online. Whether it’s offering pickup or delivery services, the division has its guests covered.

He described building the 82 locations as a “huge undertaking.” And while the COVID19 pandemic impacted logistics, it also was an accelerator and moved e-commerce to the forefront.

“I think that the game-changer more than anything was the pandemic,” Nelson said. “We were on a path with e-commerce. Whether that was a one-year plan, threeyear plan, five-year plan, 10-year plan, you could see what was going to happen,” he said. “The direction that we were heading in, the strategy was there, the infrastructure was there, the platform was there, we were growing our e-commerce, business, phenomenally pre pandemic. And then the game-changer really was the pandemic, it changed people’s behaviors overnight in a

dramatic fashion.”

With the new e-commerce locations, Nelson said the Southern Division has added about 1,500 associates over the past 12 months. Opportunities have changed when Nelson compares his early days of sorting bottles and bagging groceries at age 16. Associates today can start their careers as a picker and there are numerous possibilities to grow within a tech-focused sector.

“We’ve been able to add 82 e-commerce manager positions…[including] hundreds of new e-commerce pickers that go out and select those precious tomatoes and the perfect bananas, beautiful steaks and pieces of meat for our customers.”

Nelson also mentioned division leadership roles such as operations managers.

“It’s essentially a district manager for the e-commerce positions within the store to help with really the key metrics in those positions to drive customer satisfaction and retention and loyalty,” he said.

“[They’ve] been a tremendous driver of opportunities for our people, while taking great care of our communities and our customers,” he added.

As for what’s ahead, Nelson sees continuous innovation coming down the pipeline.

Partnership with Google

Albertsons Cos. and Google recently announced they had entered into a multi-year partnership aimed at making grocery shopping easier and more convenient for millions of customers nationwide.

The partnership brings together the power of Albertsons Cos.’ broad reach with Google’s capabilities in customer-centric innovation.

That’s a far cry from what it was like when Southern Division President Wes Jackson began his career with the company.

“There are so many opportunities, so much running around there,” he said. “But we are on a mission to migrate, reduce the commodities – weekly print ads – and get more into digital and these types of things such as this Google partnership.”

The two companies have been collaborating behind the scenes and, as part of the partnership, are debuting several enhancements.

Albertsons Cos. has engaged with numerous teams at Google, integrating with Google Search and Maps to help shoppers more easily find what they need, according to a Shelby Report article. They also are making it simpler to shop with Google Pay and infusing Google Cloud AI technologies – such as Vision AI, Recommendations AI and Business Messages – into operations to create the most predictive grocery engine.

The partnership also is making it easier for customers to get groceries for pickup and delivery, by providing helpful information about online ordering from many Albertsons Cos.’ stores directly within mobile search. This functionality is coming to Google Maps later this year.