Albertsons mobile updates see rising sales trend
Bolstered by its digital investments, Albertsons continues to see sales increase not only from pre-pandemic levels, but also from mid-forties highs in late 2020.
In the quarter ended Dec. 4, which followed the grocer’s launch of a new app in August, the number of members of the Grocer’s Loyalty Program increased 17% to 28 million. Additionally, digital sales grew 9% year-over-year, 234% over a two-year period, contributing to an overall identical sales increase of 5% year-over-year, 18% compared to 2019.
“As omnichannel households spend three times as much as in-store-only shoppers, we continue to increase our investments in digital, omnichannel and loyalty, which has resulted in an increase in identified households and customer engagement and retention. higher customers, ”said the CEO of Albertsons. Vivek Sankaran analysts said. “In the Just for U loyalty program… the number of actively engaged members has continued to increase.
He added that those active users, those who redeem their rewards, spend an average of four times as much as buyers who are not enrolled in the program.
Loyalty programs can increase consumer spending and attract them to a brand, according to data from the PYMNTS study, “What Consumers Expect from Their Grocery Shopping Experiences,” created in collaboration with ACI in the world, who surveyed more than 2,300 U.S. grocery shoppers about their purchasing behaviors.
The study found that, of the 54% of grocery store buyers who signed up for at least one loyalty program, 63% said such programs had an impact on their decisions about which grocery stores to frequent. Additionally, 61% said they spend more at grocery stores that have loyalty programs, and 48% said loyalty programs would encourage them to buy items they now buy online from their favorite grocery store instead.
Read more: Digital Features Can Help Grocers Win Over 43% of Shoppers
“The portfolio share is highest with our top tier of our loyal group, and we find that once they engage in our loyalty program, you see it,” Sankaran said. “The second thing is that we gain massive portfolio share when people engage with us in omnichannel, and we can see that because there is no [other] reason why a household suddenly starts spending three, four times [more] with us than before committing to omnichannel.
The new grocer app serves to unify its various digital offerings, including ordering, loyalty and offers, among other functions.
These investments are critical to tapping into the under-penetrated online grocery market. In the Connected “Eat” category, comprising all the ways that consumers meet their dietary needs, grocers are lagging behind restaurants in capturing the spending of today’s digital consumers, according to study data from December from PYMNTS, “The connected consumer in the digital economy: Who wants to live in a connected digital economy – and why? who surveyed more than 3,100 American adults about how they digitally engage in their daily activities. Survey results revealed that 49% of consumers order restaurants through restaurant websites or through their mobile apps, while only 32% shop online.
Get the study: The connected consumer in the digital economy
In a bid to further monetize its digital presence, Albertsons announced in November that it will launch a retail media network, Albertsons Media Collective, at the end of February, which will integrate brand sponsored content into its online platforms, generating additional revenue for the grocer from their app and website.