Safeway is a supermarket chain based in the United States. The company was founded in 1915 in American Falls, Idaho, by Marion Barton Skaggs. Today, Safeway employs over 170,000 people across the country. Its roots can be traced all the way back to 1915, when Marion Barton Skaggs opened the first store. Founded in American Falls, Idaho, Safeway has expanded into a nationwide chain, attracting customers from all walks of life.
Albertsons Companies, owners of grocers Jewel-Osco and Safeway, is making the jump to shoppable videos. With the new technology, Albertsons will be the first U.S. grocer to publish video content around brands, recipes, and meal prep. Albertsons is experimenting with the technology, as well as the Tortoise delivery robot. But why is Safeway embracing it? To find out, let’s take a look at how the grocer is leveraging video.
Albertsons plans to use Firework to sell video ad placement and digital shelf space. By hosting ads on its own site, the retailer will gain valuable data and monetization opportunities. As more grocery stores are entering the shoppable video game, the benefits of staying ahead of the competition are huge. While Albertsons may be the first grocer to use shoppable videos, Walmart recently joined forces with Meredith to create its own video platform.
As part of its digital transformation journey, Albertsons has partnered with Firework, a short-form video platform. The company’s platform allows businesses to create and curate short-form video, which they can share with consumers. Shoppable videos, on the other hand, boost add-to-cart rates by 30%, and purchase completion rates increase fourfold. Safeway is part of the Albertsons Cos.’ digital transformation journey.
Albertsons Cos. has partnered with video platform Firework, enabling shoppers to engage with brand content in a new way. The company hopes to use Firework’s technology to bring a community-oriented experience to online shoppers. Aside from implementing its own video platform, Albertsons is also partnering with Carrs Food Markets and Star Market to bring their customers a shoppable video experience on their websites.
Private label consolidation
The recent announcement by Morrisons to sell its private label business to Tesco has boosted the importance of private label. Safeway, for instance, has been increasing its own label efforts. Before the Morrisons purchase, Safeway had placed more importance on its own label than in the past. Safeway recently announced a PS1-million revamp of its Indian range. This move will allow Safeway to further develop its own label.
The move is a clear example of a company recognizing the need to capitalize on its own retail brand. While many competitors have begun to take notice of the growth potential of private labels, Safeway has a unique advantage. The brand’s name and image are free advertising. In fact, a Safeway truck can be seen on the highway adage, “Ingrains for life.”
The deal also involves a “go-shop” period during which the company will actively solicit alternative proposals for acquisition. Under this period, Safeway will evaluate these alternatives and potentially negotiate with them. The go-shop period is initially 21 days. It will extend over the next several weeks. A deal that will benefit Safeway shareholders will be completed in mid-April. As part of the deal, Safeway will distribute shares of gift-card company Blackhawk Network Holdings to its existing shareholders.
This merger is a strategic move for Safeway as the deal will consolidate the company’s purchasing and distribution channels. The merged company will have more money to lower prices and increase its competitive advantage against food retailers that sell cheaper goods. Safeway has been on a roll in recent years, and the merger between Albertsons and Safeway should help its growth. The merged company will have a combined 250,000 employees. The announcement has caused Safeway stock to rise by 27% in value since February. If the two grocery giants continue the merger, their shares will likely go up even higher.
Skaggs’ business strategy
The business strategy that brought success to M.B. Skaggs was to provide value to his customers while maintaining a narrow profit margin. By the end of his career, Skaggs had established 428 stores in ten states. In the process, he became one of the most successful entrepreneurs of all time. Here are some lessons learned from his journey. Listed below are some of his most significant accomplishments:
As an Associate Vice Chancellor for Producer Relations, Dr. Skaggs will support AgriLife in its outreach to congressional staff, members of Congress, and federal agencies. She will be responsible for identifying opportunities to expand the university’s mission. She will lead efforts to ensure that these efforts will be reflected and communicated effectively to the public. Several of these relationships will lead to increased funding for AgriLife programs.
In 2018, Albertsons and Safeway began remodeling their stores. The new stores moved away from the Lifestyle decor that was prevalent in the early 2000s, and now feature brighter colors and tiled backsplashes on department signage. Most lighting has been replaced with LEDs. In older stores, fluorescent tubes lined main aisles and halogen spotlights accented display cases. The new standard includes LED retrofit tubes for the old fluorescent fixtures, and office-style ceiling fixtures that focus on general illumination.
The company has a total of 1,332 supermarkets. The company operates under the Safeway, Market Street, and Amigos banners in the United States. In Texas alone, Albertsons operates 630 stores under the Market Street and Amigos banners. In the Eastern Division, Albertsons operates Safeway stores in Virginia and Maryland, and the Jewel-Osco division includes supermarkets in Illinois. The merger is expected to take place by the end of 2018.
The first store opened in 1975, but a local drugstore owner unsuccessfully tried to block the project. He claimed that the store violated local zoning laws. He appealed to the federal government, but was unsuccessful. The store was able to resume construction in 1977. In the years after, the Albertsons-Safeway brand has grown to be one of the largest grocery stores in the country. Its recent success is largely attributable to the Albertsons-Safeway merger.
The merger between Safeway and Albertsons is a case study of how the two companies have evolved and what it means to consumers. While the two companies are very different, they are related and complement one another well. Albertsons has a long history, spanning more than a century. Its headquarters in Boise, Idaho is a good example of how a successful merger between two different companies can create more than one giant grocery chain.
The recent news of the Safeway Theranos partnership raised eyebrows among executives at both companies. While launching this new technology in Safeway stores was a big step, the company hadn’t actually deployed its blood-testing devices in physical stores. After the news was released, the company’s stock price plummeted from $19 in January to $14 in July and August. That’s when CEO Kevin Downey defended the partnership, saying that “there are many challenges that must be addressed before it can be a big success.”
Burd hoped to make health care a more important part of the Safeway business. Under his tenure, the company opened in-store pharmacies and started offering vaccines. As part of the partnership, Holmes pitched Theranos finger-stick tests as a viable option that would be less expensive than competing labs and would be cash-flow neutral. The company did not publicly state how many tests were not validated for use on Theranos’ proprietary devices.
In September 2010, Safeway and Theranos came to an agreement whereby the grocery chain would spend $30 million to build diagnostic labs in its stores. Holmes also took a board member’s blood for a prostate-antigen test. The company never returned the results, which led to questions about the partnership. But Burd claimed that the partnership made him feel confident in Holmes’ ability to make people healthy. This is a good sign for consumers and the company.
The Safeway Theranos partnership is under fire amid a public relations scandal. Founder Elizabeth Holmes and CEO Steven Holmes have testified before Congress in a lawsuit over the partnership. The lawsuit was filed after the companies settled for less than $30 million. The companies haven’t announced a date on when the test will be launched in Safeway locations. However, a judge has yet to make a ruling.