Albertsons Unveils Regional Operating Model, Takes Next Step in Merch United Strategy
Albertsons Cos. will consolidate 11 divisions into four regions under a new regional operating model, with a focus on strengthening its connections with customers, supporting stores and driving results within communities.
The retailer will also centralize center store merchandising as the next step in its Merch United strategy.
Albertsons announced the change the same day the grocer revealed first-quarter results that saw identical sales decrease 0.8% and overall net sales and other revenue inch up 0.2%.
“We call it the ACI Edge," Albertsons CEO Susan Morris explained. "By consolidating 11 divisions into four regions and centralizing center store merchandising, we can make faster decisions, improve in-stocks and move accountability closer to our stores, where fresh, service and local execution matter most to customers.”
In this most recent step in Albertsons' Merch United strategy, the retailer is bringing customer insights, supplier relationships, strategy, product, placement, promotions and price under one enterprise team, combining the buying power, data and analytics of a national retailer with the customer focus and insights of local market teams, the company said.
Albertsons' new regional operating model will include:
The California Region, encompassing the Southern and Northern California markets;
the West Region, encompassing the Mountain West, Portland and Seattle markets;
the South Region, encompassing the Southwest, Southern and United markets;
and the East Region, encompassing the Jewel-Osco, Mid-Atlantic and Shaw's markets.
The company said it does not have plans to realign stores or districts.
“By bringing center store work together at the enterprise level, we can better leverage our scale, strengthen supplier partnerships and create more capacity for our regional and market teams to focus on fresh, local and the customer needs that make each community unique," Michelle Larson, Albertsons EVP and chief merchandising officer, said.
Larson stepped into her position last summer to lead Albertsons' efforts to bring its national and division merchandising teams closer together – a shift in the company's approach to merchandising that laid the foundation for its Merch United strategy.
"Center store centralization is an important next step in Merch United and in how we build a stronger, more connected merchandising organization," Larson said.
This article was originally published on P2PI sibling brand Progressive Grocer.
