Albertsons Pushes Back on Prime and Plus With Member Delivery Service

Lisa Johnston
Editor-in-Chief, CGT
Lisa Johnston CGT
Albertsons is offering a free 30-day trial for its new FreshPass delivery service.
Albertsons is offering a free 30-day trial for its new FreshPass delivery service.

Albertsons Companies is moving more heavily into the delivery wars with the launch of an unlimited grocery delivery service for members, a new mobile app and a revamped loyalty program.  

The grocer's new FreshPass delivery is priced at $99 per year or $12.99 per month and includes unlimited free delivery on orders $30 or more. Select markets also offer free 2-hour grocery delivery and Drive Up & Go shopping.

Albertsons, which has also been piloting remote-controlled delivery, is offering a free 30-day program trial, with additional incentives including product discounts, and culinary and wine experiences. Annual subscribers from July to Dec. 31 will earn a $5 promo credit every month.

In offering the annual program, the company will compete with the likes of Amazon and its $119 annual Prime service, as well as Walmart's $98 Walmart+ service.

[See also: Albertsons Begins Zero-Emission Grocery Delivery Fleet]

The company's new Albertsons for U Shopper Loyalty Program, which replaces the company’s Just for U program, in turn beefs up the experience to include personalized discounts and incentives. The No. 12 retailer in terms of retail market share operates stores across 34 states and Washington D.C. under such banners as Albertsons, Safeway, Vons and Jewel-Osco, and the app carries the name of its respective banner (e.g., Safeway for U and Jewel-Osco for U).  

The free loyalty program enables consumers to immediately earn $5 off their next in-store or online purchase of $25 or more of qualifying items, and they can subsequently earn points on most dollars they spend. Points can be redeemed on groceries and gas, while incentives include personalized deals, a free item every month, a birthday item and more.

Finally, the grocer has combined these new services into a single mobile app, known as Deals & Delivery. It can be downloaded across the company’s 20-plus banners, enabling shoppers to collect and redeem their rewards from their smartphones. It also features a digital wallet, app coupon integration, list builders and the ability to pay directly from the app.

“We have been working hard to revolutionize Albertsons Companies’ digital offerings and enhance all aspects of the food experience and journey,” said Albertsons Chris Rupp, executive VP and chief customer and digital officer. “We have been in lock-step with our customers and today’s launch of our new Deals & Delivery app, our Albertsons for U loyalty program and FreshPass subscription service exemplifies our commitment to innovation and customer service, meeting shoppers where they want to shop whether that be in store, curbside or at home.”

[See also: Danielle Crop Joins Albertsons As 1st SVP, Chief Data Officer]

Indeed, the grocer has been making deep investments in its digital capabilities, including a multi-year partnership with Google to develop predictive grocery list building and Google Maps integration. As part of this, Albertsons is providing online ordering details from many of its stores directly within mobile search, while Google is building in details like pickup and delivery windows, fees, and order minimums on business profile search results.

Its stores are also receiving investments to further their omnichannel capabilities, including automated and contactless PickUp kiosks. These temperate-controlled kiosks enable shoppers to retrieve their online orders from stores during a two-hour window. Upon scanning a code on their phones, the shopper’s groceries are then robotically delivered to them for pickup.

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