Albertsons Companies reported July 23 that it is reorganizing its retail operations from 11 divisions into four regions and moving center store merchandising to a single enterprise team, changes the Boise, Idaho-based retailer said are designed to speed decision-making, strengthen accountability and improve the customer experience.
Under the new structure:
- The California Region will comprise Southern and Northern California.
- The West Region includes the Mountain West, Portland and Seattle markets.
- The South Region takes in Southwest, Southern and United markets.
- The East Region covers the Jewel-Osco, Mid-Atlantic and Shaw’s businesses.
Each region will contain local markets responsible for customer connections, store support and community results. Albertsons said it has no plans to realign stores or districts, and its 22 banners will retain their existing identities, history and community ties.
“We call it the ACI Edge. It combines the scale and capabilities of a national retailer with the accountability and local focus that have long distinguished our banners,” said Susan Morris, CEO of Albertsons Cos., headquartered in Boise, Idaho.
“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.”
Center store moves to a single enterprise team
The Merch United step brings customer insights, supplier relationships, strategy, product, placement, promotion and price for center store under one enterprise team. Albertsons said the aim is to apply national buying power, data and analytics while keeping local market insight in the mix.
Fresh merchandising decisions will remain in the markets, guided by the Merch United strategy and local customer preferences.
“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,” said Michelle Larson, EVP and chief merchandising officer at Albertsons Cos.
Paired with data and AI investment
The company said the simpler structure, combined with its growing data and AI capabilities, is intended to help teams respond more quickly to customer needs, improve in-stock performance and deliver a more consistent experience across stores and digital channels. Albertsons did not provide a timeline for the transition.
As of June 20, Albertsons operated 2,240 stores in 35 states and the District of Columbia, along with 1,708 in-store pharmacies, 408 fuel centers, 22 distribution centers and 19 manufacturing plants.