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Case
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Reference no. 306-116-1
Published by:
IBS Research Center (2006)
Length:
11 pages
Data source:
Published sources

Abstract

Albertsons Incorporated, America's 2nd largest supermarket chain with more than 2,500 stores and revenues of around $40 billion, enjoyed a presence across 37 states of the US. It operated under various brand names including Albertson's, Acme Markets, Bristol Farms, Jewel, and Shaw's. Albertsons faced competition from Kroger, Safeway and Wal-Mart. The supercentres of Wal-Mart, which offered products at lower prices, affected the net income of Albertsons, which fell from $865 million in 2003 to $556 million in 2004. In spite of the revival efforts undertaken by Albertsons, the net income further declined to $474 million in 2005. Chief Executive Officer Larry Johnston eventually decided to sell the chain but faced dilemma whether to sell the whole chain or a part of it. The case traces the origin, growth and various acquisitions undertaken by Albertsons, the second largest supermarket chain in the US. The case focuses on the revival efforts carried out by Albertsons to sustain competition from Wal-Mart supercentres and ends with the dilemma faced by Larry.

Topics

Albertsons Inc; Supermarket industry; Wal-Mart; Kroger; Safeway; Supercentres; Joe Albertson; Larry Johnston; Acquisition; Price war; Market share; Customer relations; Competitive strategy; Management dilemma
Location:
Industry:
Size:
USD40 billion revenues (2005)
Other setting(s):
2001-2005

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