Albertson's Last Stand [PDF]
(Baseline article.) Albertson's is the 3rd largest grocer in the US, competing directly against Kroger and Safeway -- but more importantly, sees the future, and knows that WalMart will clobber them all if they don't do something to turn the tide. WalMart entered the grocery business in 1998, and since then, has grown its take of the business to $56billion -- surpassing Albertson's $35.6billion. WalMart makes 3.3 cents on every dollar spent on grocery at their stores -- Albertson's a mere 1.4 cents. But when you consider WalMart's efficiency, and not to mention their average $8.50 per hour employees versus Albertson's $13 per hour, it is no surprise. Albertson's is betting big that technology will help it stand up to WalMart and even surpass it. It's betting big with huge investments in POS technology, supply chain technology, etc. Can it survive? Can it win? I'm rooting for them, and not because they're the underdog, but because a WalMart dominated world is not a good one.
(Baseline article.) Albertson's is the 3rd largest grocer in the US, competing directly against Kroger and Safeway -- but more importantly, sees the future, and knows that WalMart will clobber them all if they don't do something to turn the tide. WalMart entered the grocery business in 1998, and since then, has grown its take of the business to $56billion -- surpassing Albertson's $35.6billion. WalMart makes 3.3 cents on every dollar spent on grocery at their stores -- Albertson's a mere 1.4 cents. But when you consider WalMart's efficiency, and not to mention their average $8.50 per hour employees versus Albertson's $13 per hour, it is no surprise. Albertson's is betting big that technology will help it stand up to WalMart and even surpass it. It's betting big with huge investments in POS technology, supply chain technology, etc. Can it survive? Can it win? I'm rooting for them, and not because they're the underdog, but because a WalMart dominated world is not a good one.
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