Last month’s announced merger between privately held Albertsons Companies, one of the nation’s largest grocery retailers, and publicly traded Rite Aid Corporation, one of the country’s leading drugstore chains, will offer Albertsons consumers added choice, convenience, and access.
Bob Miller, Chairman and CEO of Albertsons Cos., talked about the merger with Loyalty360.
“This transaction means that Albertsons Companies can offer customers more choice, convenience, and access,” Miller explained. “The new company will have an expanded footprint and be ranked first or second in 66 percent of the top metropolitan areas in the United States, and first or second in 70 percent of pharmacy locations in the West. We will be the leading integrated food, health, and wellness retailer on the West Coast and will have a strong brand position in the Northeast. The combined company will be positioned to deepen existing relationships with customers and expand reach across higher-value pharmacy customers. Additionally, Albertsons and Rite Aid’s own brands, along with Rite Aid’s pharmacy expertise, will allow the combined company to drive growth opportunities and efficiencies across its purchasing, marketing, manufacturing, and merchandising functions.”
The transaction is still subject to customary government approvals.
“Our omnichannel platform—including multiple in-store formats, digital channels, and same-day grocery and prescription delivery options—will enable the combined company to meet customers where and how they want to shop,” Miller explained.
Will the merger impact Albertsons’ loyalty program offerings and will customers notice any differences?
“We will leverage the combined current base of 25 million active loyalty program participants to connect with customers through real-time marketing and create localized and personalized marketing and merchandising strategies,” Miller added. “New cross-branded opportunities will improve connections across our base of active loyalty program participants and improve their shopping experiences.”
And what does this mean for the future of Albertsons?
“This combination is all about enabling us to better serve our customers, when, where, and how they want to shop,” Miller said. “Our combined omnichannel platform will provide customers with convenience, choice, and flexibility. The combination will make us a truly differentiated leader and we are very optimistic about the future.”
As a result of the merger, the integrated company will operate approximately 4,900 locations, 4,350 pharmacy counters, and 320 clinics in 38 states. The Albertsons pharmacies will be rebranded under the Rite Aid name.