Will a Prime-style subscription service take Albertsons enterprise to a brand new degree? – RetailWire

08/17/2021

Following the playbook of some of the most innovative personalities in retail, Albertsons is launching its own subscription service with a key Amazon Prime-style perk.

The program called FreshPass allows subscribers to get unlimited free grocery deliveries, reports Progressive grocer. FreshPass, an optional service added to Albertsons’ existing apps, costs $ 99 per year or $ 12.99 per month. With a subscription, buyers get free shipping for orders of $ 30 or more.

The grocer is offering a 30-day free trial with a five percent discount on some of its private label products and ongoing perks like food and wine experiences to encourage adoption. Albertsons is also introducing two more new digital offerings – a Deals & Delivery app and an improved loyalty program. The loyalty program called Albertsons For U will automatically include members of the grocer’s previous program.

The cost of the Albertsons FreshPass program is roughly the same as the new one from Walmart Walmart + Subscription service (which offers unlimited free shipping and various other perks) and about $ 20 cheaper per year than Amazon Prime.

Even before the novel coronavirus pandemic, surveys showed that a majority of customers preferred free and fast shipping for e-commerce orders. The dramatic increase in the use of grocery delivery since the beginning of the pandemic has caused grocers to compete to provide such services to a greater extent than ever before.

However, some of the biggest names in retail are starting to pay customers extra for the privilege of fast delivery in some cases. Amazon recently announced that Whole Foods’ grocery delivery, which was previously free with Amazon Prime membership, costs an additional $ 9.95 in some pilot markets.

Albertsons, once regarded as a latecomer among grocers, has improved and redesigned its operations in recent years. The chain has piloted micro-fulfillment centers for online orders, in-store robots, automated grocery pick-up kiosks, and other new omnichannel technologies.

The grocer too went public in June 2020 and finally completes its IPO after several failed attempts.

DISCUSSION QUESTIONS: Will a membership program with unlimited free delivery work for Albertsons and its existing customers? What does Albertsons need to do to differentiate its offering from other providers of similar subscription services?

Brain trust

“Albertson’s ‘Prime-like’ subscription program is a must to keep the banner competitive.”

wpDiscuz

Will throwing cash at drivers resolve the trucker scarcity downside? – RetailWire

July 30, 2021

A truck driver shortage, which has contributed to the ongoing disruption in the supply chain, has been a challenge for over 15 years and is only expected to get worse.

The American Trucking Associations (ATA) said prior to the pandemic that The trucking industry faced a shortage of nearly 61,000 drivers and would need to hire around 1.1 million new drivers over the next decade to keep pace with rising freight demand.

Noisy AT A, the problem can be seen in the relatively high average age of truckers – 46 – and the fact that only seven percent of truckers are women. Extensive regulations, the pressure to make deliveries on time, and long absences from home have long dampened the truck driver’s career.

More recently, headlines about the potential of autonomous driving may have put off young applicants. The shift to e-commerce accelerated by the pandemic has allowed long-haul truckers to step into positions on UPS, FedEx or Amazon.com that more regular routes close to where they live.

To meet demand, private fleets have increased truck driver wages from $ 73,000 in 2013 to more than $ 86,000, according to one ATA survey.

As CNN However, as recently reported, the salary increases are causing many drivers to move from one company to another, implying an annual turnover rate of 95 percent for truck load carriers. With the extra pay, some choose to work less in order to spend more time at home.

Legislators could be urged to improve working conditions for truck drivers. In the UK, the government has just relaxed the rules on how long truck drivers can work. The ATA urges regulators to lower the minimum age for truck drivers from 21 to 18.

Dollar general began offering truck drivers a signing bonus of $ 5,000 in mid-July, which was to be paid out within the first six months of their employment.

Walmart began to offer $ 8,000 sign up bonuses In April for drivers who promise to earn up to $ 87,500 in the first year. Walmart’s offerings included activity, training and mileage payments from day one; quarterly bonuses for safe driving; weekly home time; and up to 21 days of paid time off in the first year.

DISCUSSION QUESTIONS: Will higher and higher wages likely be the most useful in addressing the trucking shortage, or does retail need to re-prioritize careers in other ways? What less obvious solutions do you see?

Brain trust

“Improving working conditions and the time pressure truckers have to work in is the only way to attract truckers.”

wpDiscuz