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Digital transformation by Albertsons Companies, the second largest retailer in the United States

 Albertsons Companies, which operates about 2,300 supermarkets in 35 states in the United States, is the second largest retailer in the United States after Walmart.

It has 21 brands such as "Safeway" and "Albertsons", sales in 2017 were 59.9 billion dollars (approximately 6.589 trillion yen at the conversion of 1 dollar = 110 yen), and the number of employees 275,000 people (as of July 2017), with an average of 34 million customers using the company's affiliated stores per week.

In recent years, the "Albertsons Companies" has grown rapidly in the EC business. In 2018, it grew by 112% year-on-year. The product management platform manager of "Albertsons Companies" talked about their efforts in digital marketing using " Adobe Experience Cloud ".

"Albertsons Companies" with 2,300 retail stores nationwide

Challenging the customer experience of the entire group company with data-centric principles

Paul Johnson, director of product management platforms at Albertsons Companies, said the company is working to provide customers with more digitalized services to beat the increasing competition.

"Albertsons" has been working on e-commerce since 2000 and has a history of over 18 years. Now, with traditional retailers like Walmart, emerging e-commerce operators like Amazon, and even startups, the competition is fierce. For this reason, we have also been working on digital transformation for the past year and a half, and are working to create new value. (Mr. Johnson)

Paul Johnson, Head of Product Management Platform, Albertsons Companies

'Albertsons Companies' Competitors Are No Longer Traditional Retailers

There were three tasks for "Albertsons Companies".

• To provide customers with a better experience for shopping 
• Clear the technical challenges to successfully manage customer accounts for 21 different brands
• make use of the data you have

The company operates retail under 21 brands , each with a different membership service. In addition, there were 42 smartphone apps , and it was a complicated situation, and it was necessary to integrate them.

"Albertsons Companies" brand and app

As a specific solution, we aimed to keep it simple without extending our hands as much as possible. For example, we integrated the point card system of physical stores with the system of e-commerce to achieve single sign-on. I encouraged the development team to release it as soon as possible, but I was determined not to carry on the old ways and avoid pain . (Mr. Johnson)

In order to solve these problems, the following rules were decided internally.

Key Points of Digital Transformation for “Albertsons Companies”

Close communication with the development team, adherence to data and customer-centricity, and the use of multiple solutions centered on Adobe Experience Cloud have become important in resolving issues. . (Mr. Johnson)

He explained that the user's purchasing experience has changed significantly by sticking to the stance of thoroughly emphasizing data.

The Right Tools Are Essential for the Right Efforts

Ms. Angela Singu, who took the stage next, said as follows.

You have to use the right tools for the right efforts . You'll have to scrutinize which of Adobe's services is the most appropriate for your company. (Mr. Xingu)

Angela Singu, Director of Analytics and Experiments, Albertsons Companies

As a result, the company used " Adobe Analytics " for analytics service, " Adobe Experience Manager " for managing user experience, and " Adobe Target " for reaching customers . It is said that they are working on a five-year roadmap using those tools .

"Adobe Experience Cloud" solution introduced by "Albertsons Companies"

We started with an A/B test of pricing . Next, we test the UI for coupons, then test recommendations, and so on.

Efforts of “Albertsons Companies”

Currently still on the roadmap. In 2018, the digital environment of multiple brands that had been divided was integrated into one, and the environment for point cards and e-commerce was improved. Already, e-commerce performance has grown by 110%. In 2019, as an extension of that, we would like to create an environment that allows seamless shopping at physical stores and e-commerce, establish a marketing system that can reach more customers, and improve customer convenience.