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11/12/2021

Albertsons could leverage media network for own brands

Retailer launched Albertsons Media Collective as a tool for branded CPGs but will utilize to promote private brands, too.
Dan Ochwat
Executive Editor
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Albertsons has launched its own retail media network — a digital and omnichannel platform that enables branded CPGs to reach shoppers through native displays, sponsored products and more, but will also be used to promote the retailer’s private brands where it sees fit, the Boise, Idaho-based retailer told Store Brands.

How retailers can present their store brands via digital is a growing topic as e-commerce continues to grow, and the retail media network from Albertsons, while designed for larger CPG partnerships, will be another tool in its own brands digital arsenal.

“While this platform will now be an option for the company’s own marketing endeavors, the focus of the business is on national and regional brands,” Kristi Argyilan, SVP of retail media Albertsons, told Store Brands.

graphical user interface, application

The retail media network is called Albertsons Media Collective, led by Argyilan, and will begin serving campaigns Feb. 27, 2022, putting its own brands and branded CPG partners into a network that has access to some of the most valuable positions across the Albertsons websites and apps, tapping into more than 100 million shoppers across the country, including more than 2,200 store locations and more than 27 million members of the retailers’ Just for U loyalty program.

The network, developed in partnership with CitrusAd and Merkle, is designed to deliver digitally native, shopper-centric and engaging branded content to the company’s ever-growing network of shoppers and media opportunities include advertising placements on Albertsons owned properties such as its homepage, department, category, sub-category, email, search, app, pharmacy, as well as on Albertsons’ off-site targeted ad placements.

“We are thrilled to be able to create a differentiated retail media network that will allow our customers to engage with the food and brands they love,” said Argyilan. “Albertsons Media Collective will further our goal of bringing brands and our customers together by delivering an unrivaled vendor and customer experience and truly reimagining marketing for what’s next.”

Sales and other revenue topped $16.5 billion during the quarter ending Sept. 11, versus $15.8 billion for the second quarter in 2020. Identical sales during Albertsons’ second quarter rose 1.5%, beating analyst expectations. On a two-year stacked basis, same-store sales were up 15.3%, and the company’s store brands reached a penetration level over 25%.

Underscoring the company’s efforts in the e-commerce space, digital sales are also in the black, up 5% for the quarter and a noteworthy 248% from two years ago.

"We are pleased with our second quarter results as we continue to execute our transformation strategy. The favorable consumer backdrop together with our focus on in-store excellence, accelerating our digital and omnichannel capabilities, increasing productivity and strengthening our talent and culture, are driving increased identical sales and improved performance,” remarked Vivek Sankaran, Albertsons’ CEO.