Who is Albertsons?

Digital Retailer Snapshot

Albertsons

•  Albertsonsiscollabora.ngwithPinterestandVestcomtoofficiallyrolloutanin-storeandmobileintegratedini.a.vein2020.Tagswithaphotoofacompletedrecipewillbeplacednexttorelevantproducts’on-shelfpricetags.ThecustomercangotothePinterestapp,snapapictureofthetagandwillberedirectedtoAlbertsons'Pinterestpage.There,therecipewillpopupwiththeingredientsavailableatthegroceryretailer.Manyoftherecipe'sproductsdirectshopperstoprivatelabelgoodsandhelpssupporton-sitebasketbuildingwhilewanderingthestore.

•  InOctober2018,AlbertsonsCompanieslaunchedAlbertsonsDigitalMarketplace,ane-storethat

shopperscanpurchasedirectlyfromthemanufacturer.TheplaMormoffers40,000unique,specialtygroceryproductsandisdesignedtogainvisibilitytosmaller,up-and-comingCPGbrandswhilemaintainingthemanufacturer'ssupplychains.Frombeautytopetcare,abrandthatisinterestedtogainentryontotheD2CretailsiteneedstoworkdirectlywithAlbertsonsMarke.ng,notothercorporatedivisions,toac.vateanassortment.

In the News

AlbertsonsCompaniesisthesecondlargestsupermarketchainintheUnitedStates,availablein34statesunder20differentfoodanddrugbanners.Withafocusonastrong,localizedpresence,AlbertsonsCompaniessees34millionin-storeshoppersperweekacrossits2,262stores.Recognizingthepoten.alformarketgrowthinitseCommerceandomnichannelspaces,thegrocerycompanyplanstoexpandservicesinHomeDelivery,DriveUp&Go(DUG)andtheJustforUloyaltyprogramtoincreaseconsumerengagement,convenienceofpathtopurchaseandshareofwallet.

1939 $503M 10% 60% 16.3M

Yearestablished U.S.eCommercenetsales,2019

(0.8%oftotalsales)

BasketsizeofAlbertsonsHome

Deliveryvs.instore

Albertsons'onlineshoppers

alsoshopAlbertsonsinstore

Totalmonthlysitevisitors

(alldigitalbanners,December2019)

5x larger

Year-over-yearonlinesales

changefrom2018to2019

Sources:AlbertsonsCompaniesCompanyFactSheet,9/7/19;AlbertsonsHomeDeliveryDemographicIntel,2017;"Albertsonsrevsupenginesofgrowth",SupermarketNews;EDGERetailInsightRetailerDashboard,2020;"2018Insider'sGuideAlbertsons",INConnectedMarke.ng;Similarweb.com;"AlbertsonswillrolloutPinterestrecipeintegra.on",GroceryDive;"Albertsonsintroduces1-2hourprescribeddrugdeliveryservice",AlbertsonsPublicRela.ons,

Photograph courtesy of Forbes, Albertsons

Serving across 34 states

Target Market: Health-Conscious Affluent Moms

Photograph courtesy of Albertsons

The Consumer Experience

EligibleBanners:Albertsons,JewelOsco,Safeway,Vons,MarketStreet,Randalls,UnitedSupermarket,Pavilions,Amigos,AlbertsonsMarketandTomThumbFee:Freeforfirstorder,then$9.95averagedeliveryfeeand$3.95-$4.95servicefeeOrderMinimum:$30StoreFootprint:1,151storesAssortmentRange:43,000productsDeliveryOpSons:same-dayisavailablebutcondi.onalonopenappointments

Home Delivery EligibleBanners:Albertsons,JewelOsco,Safeway,Vons,MarketStreet,Randalls,UnitedSupermarket,Amigos,AlbertsonsMarketandTomThumbFee:$3.95-$4.95servicefee,dependingonloca.onOrderMinimum:$30StoreFootprint:600storesAssortmentRange:Condi.onaltoselectedstoreSame-DayPickup:Yes,3-hourminimumfulfillmentwindow

Drive Up & Go (DUG)

Sources:AlbertsonsCompaniesCompanyFactSheet,9/7/19;"MobileApps",Albertsons.com2020;"OnllineShoppingFAQ",Albertsons.com2020;"Albertsonsrevsupenginesofgrowth",SupermarketNews;"2018Insider'sGuideAlbertsons",INConnectedMarke.ng;Instacart.com,AlbertsonsCompaniesShopperMarke.ng

EligibleBanners:Albertsons,JewelOsco,Safeway,Vons,StarMarket,Andronico’sCommunityMarkets,Shaw’s,Carrs,ACME,RandallsandTomThumbMembershipOpSon:InstacartExpressmembership($99/yr)Fee:Freew/membership;fornon-members:$3.99-$5.99perorderOrderMinimum:$35StoreFootprint:1,800storesAssortmentRange:43,000productsDeliveryOpSon:Minimumfulfillmentwindowis2hours

Instacart Partnership

The Manufacturer Experience What Does This Mean for Sales?

•  Albertson’sMonopolymerchandisingeventistheirlargestadcampaignoftheyear,witha13-weekdura.onfromFebruarytoMay.Mostmanufacturerscanpar.cipateiftherequired$70Kinvestmentismet.

•  Theother3na.onaleventsarecompe..vetoenter.Albertsonsacceptsmostsalespitchesbasedona$40Kinvestment,lowestcasecostoffer,assortmentrelevancytosalemessaging,mul.-channelmediaapplica.onsandcouponenhancements.

•  Thesemajoreventsareplanned4monthsinadvance,sopitchestopar.cipatemustkeepAlbertsons'scheduleinmind.

Digital Retailer Snapshot Albertsons

Albertsonshasadecentralizedopera.ngsystemthatgiveseachdivisionandbannersignificantcontrolovertheirownmerchandising,pricingandmarke.ngac.vi.es.Becauseauthorityandresponsibilityareheldatthelocallevel,productselec.onistailoredtoeachmarket.

AlbertsonsCorporateDenver

Eastern

Inter-mountain

NorthernCalifornia

SouthernCalifornia Portland Southern Southwest ACME Jewel

Osco

Shaw’s

Star

United

HaggenNaSonalMerchandisingEventsAcrossallbanners,thereare4na.onalsalesevents:Monopoly,SummerSavings,AnniversarySaleandStockUpSale.

Sources:"2018Insider'sGuideAlbertsons",INConnectedMarke.ng;''AlbertsonsPerformanceMediaNewSiteSponsoredSearch''Webinar,Quo.ent;"AlbertsonsPerformanceMedia:NewSiteSponsoredSearch",Quo.ent&Albertsons;Albertsonsperformancemedia.com,AlbertsonsCompaniesShopperMarke.ng

CPGDigitalCommerceMarkeSngSoluSons•  Quo.ent'smediaplaMormofferssponsoredplacementopportuni.estoboostonlineand

omnichannelsales:�•  HomepageandCategoryAisleCarouselshaveselectablecategoryclassifica.onswitha31%

conversionrate.•  SERP(searchengineresultspage)providessponsoredlis.ngsinsearchpageplacements2,4,6,10and12.�

JustforUisanAlbertsonsCompaniesloyaltyprogramwithdigitalcouponsandpersonalizeddeals.Manufacturerscancapitalizeontheseac.va.onsforbothonlineandin-storepromo.onstohelpmaintainconsistencyandincen.vizecertainpathstopurchase.Allcouponsandoffersaresupportedwithintheloyaltyapp,viaemailandthroughpushno.fica.ons.

What Does This Mean for Marketing?

: Omnichannel Promotion Opportunities

Photograph courtesy of Albertsons

Digital Retailer Snapshot Albertsons

•  Quo.ent’sRetaileriQplaMormconnectsdirectlytoJustforUac.va.ons,providingback-enddeliveryofpersonalizeddigitalcouponsthatcanbeaddedtomobileloyaltyapps.Thesepromo.onscanbesponsoredforpreferredplacementacrosstheapp,thentargetedbyscale(na.onalorregional)andshopperbehavior.

•  TheJustforUCouponsLandingPageplacesalldiscountsfromamanufactureronasinglepage,withacustomURLandabrandedbanner.ThisishighlyrecommendedforlargerbrandswithsubsidiariesormanufacturerswithabreadthofassortmentatAlbertsonsstores.

•  TargetedManufacturerCouponsarecents-offoffersthatcanbesegmentedbyQuo.ent'slifestyle,purchasebehavior,purchaseintentorpredic.vemodelingdata.Ifvisibilityistheobjec.veforapromo.oncampaign,Albertsonscantargetthesecouponstolapseshopperstobringthembackin-storeortothesite.

•  For"freeitems"(i.e.digitaldemos)andfreeshippingpromo.ons,thereisnoaddi.onalcosttoac.vate,excepttofundtheproductcost.

•  Seasonalityandpersonaliza.onarekeyforROI,appealingtospecificconsumerneedswilldrivethecoreincen.vetoaloyalty-basedsale.

•  Productplacementkeywordsarepre-selected;thereforenobrandedsearchtermscanbeop.mizedinsearch.•  Geotarge.ngtoazip-codelevelisavailableformarke.ngandadver.singcampaignstosupportpersonaliza.onand

relevancytotargetconsumers.•  Albertsonsiscurrentlyworkingtocreateauniversalpromo.onalplannertokeepoffersconsistentacrossdivisions,thisis

causingmajordigitalCPGeventstobeplanned26weeksinadvance.Couponsandsponsorshipsarenormally4to8weeks.PerformanceAnalyScs•  Arribu.oniscurrentlylimitedtoonlinesalesandprovidedbyQuo.ent.Albertsonsisexpectedtoincorporatein-storesales

repor.nginQ12020.Addi.onaldatarepor.ngcapabili.esareasfollows:•  Campaignperformanceandinsights•  Pageperformanceandconsumerengagement•  Fullfunnelconversion•  Recommenda.ons

Albertsons’marke.ngismanagedthroughasingleaccesspoint,AlbertsonsPerformanceMediaPoweredbyQuo.ent,acrossthefollowingbanners:Albertsons,Safeway,JewelOsco,Pavilions,Vons,TomThumbandRandalls.Theremainingbannerswilltransi.ontotheupdatedAlbertsons’siteformin2020,expandingpromo.onalac.va.onopportuni.es.AlbertsonsPerformanceMediacanbemanagedbyanagency,suchasSageTree,orthemanufacturerdirectly.

Leverage Albertsons Marketplace for specialty, D2C products and step into brick-and-mortar networks •  Formanufacturersthataredigitallyna.ve,AlbertsonsMarketplaceoffersanopportunitytoenter

mainstreamretailwithoutreinven.nganeCommerce-basedsupplychain,requiringanin-storepresenceorneedingbuy-infromseparatedivisions.

•  KeepingAlbertsons’healthconscioustargetshopperinmind,naturalandspecialtybrandscanleveragethisplaMormsuccessfullysincethoseconsumersarelikelytopaymoreforauniqueitem.ThoseD2Cmanufacturerscanboostvisibilityandawareness,offeruniquemediaandpromo.onsandbuildashelfsetthatcaterstothosespecificshoppers.

Just for U personalization promotions are critical to elevating omnichannel opportunities at Albertsons •  SinceAlbertsonsmarke.ngstrategiesareprice-focused,JustforUisavitalcomponentofmarke.ng

campaigns.LoyaltycouponswilldrivethestrongestROIandarractdivisionalandbannersupportasHomeDeliveryandDriveUp&Goservicesexpand.

•  InvestinJustforUlandingpagesformanufacturerswithawideassortmentatAlbertsonsCompanies.•  BringinlapseshoppersorspecificconsumermarketswithTargetedManufacturerCoupons.Couplewith

“freeitem’’incen.vestobuildbasketsanddriveacalltoac.onwithmobileapppushno.fica.ons.•  Iden.fycoreobjec.vesfortheshoppersandretailerstoimplementthebestJustforUdiscountsthat

arenotonlyarrac.vebutmeetpersonalgoalsinthespace.

Avoid one-size-fits-all solutions when elevating eCommerce across Albertsons banners, instead focus on local •  ThedecentralizedstructureofAlbertsonsCompaniesputsdecisionmakinginthehandsofmanagers

thatareclosertotheshopperbase.Thisdivisionalautonomyworksbestwithlocalizedmarke.ngstrategieswhereamanufacturer’sassortmentsareavailable.

•  Capitalizeonna.onalandlocalevents,includingholidays,thatarerelevanttoamanufacturer’stargetmarketsandproducts.

•  Leverageplacements,exclusiveoffersandfeaturesonAlbertsonsCompanies’marke.ngchannelsthataretailoredtothespecificneedsofthedivisionsorbanners.

•  UsingQuo.ent’sgeotarge.ngcapabili.es,implementexclusiveofferstodeliverondifferen.ated,localvalueandimprovedexperienceswithretailreadydigitalshelves.

Digital Retailer Snapshot

Albertsons

Strategic Areas of Focus

TolearnmoreaboutpartneringwithAlbertsons,contactnatalie.monte@advantagesoluSons.netwithAdvantageDigitalTechnology.