AlbertsonsSafeway SWOT Weaknesses Strengths Significant volume and scale
Albertsons-Safeway SWOT Weaknesses Strengths • • Significant volume and scale Leading share position in multiple markets Senior management largely merchant oriented Retailer is adopting a “clean slate” mentality regarding strategic planning • Combined retailer has significantly greater buying power than either individual company did before • Decentralized structure puts decision rights in hands of managers that are closer to shopper base Opportunities • Meager growth within legacy companies provides little forward momentum • Decentralized structure creates more complexity and potential executional inconsistencies for suppliers • Both Albertsons and Safeway have sustained protracted shopper loss in recent years • Lacks a sufficiently differentiated offer for shoppers • Lingering perception for poor prices will be difficult to overcome • Senior management has yet to establish a corporate culture going forward • Cerberus influence could undermine a shopper centric approach to business Threats • Expanding Just for U platform to Albertsons banners could elevate personalized pricing capabilities • Expanding shopper loyalty program to Albertsons banners would greatly expand data set and create opportunities to boost relevance with shoppers • Re-establishing price trust with shoppers via aggressive marketing campaign • Develop a more differentiated offer across the store • Expand e-commerce platform to urban markets (e. g. Chicago) • Divisional autonomy enables improved efforts around localization © Kantar Retail • Target’s renewed focus on select grocery categories could pose an unforeseen competitive challenge • Smaller regional retailers (e. g. Haggen, Save Mart) could opportunistically steal share while Albertsons-Safeway remains in transition mode • Hispanic shoppers are gaining share of shoppers base and could fundamentally reshape overarching consumer trends and preferences • Future economic downturns could cause shoppers to return to a sharp focus on value
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