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[4 comments]

Albertsons-Savon Remodels Complete in El Paso

August 21, 2003

By George Anderson

Albertsons says it has completed remodels to offer a complete food store and a complete drug store shopping experience under one roof at all eight of its El Paso, Tx. stores.

The units, which combine Albertsons and Savon, have added 10,000 new drug store items to those previously carried in the single Albertsons banner locations.

"Albertsons is the only retailer in America that has a solid, well-established reputation for both grocery and drug store brands," said Jim Rice, Albertsons Southwest Division president in a released statement. "The conversions to dual-branding demonstrates a major commitment by our company to become the food and drug store of choice for El Paso shoppers."

Moderator's Comment: What are your thoughts on Albertsons' expanded food and drug store format?

Albertsons has continued to lose ground (as has pretty much everyone else) against Wal-Mart's Supercenters. The Jewel-Osco, Albertsons-Savon concept sounds good but may still not be a match against a bigger and lower-priced competitor. [George Anderson - Moderator]

Discussion Questions



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Comments:

I think the grocery/drug store combo is a good one. Albertsons has numerous stores in my area and they are conveniently located. The one I shop has gone to this model and I love it. Will it help Albertsons compete with Wal-Mart? Possibly...the drug business is huge and getting larger with the aging of the population. Older people will likely appreciate this one-stop shopping.

Anonymous

While I can't totally disagree with Joanne on older shoppers' appreciation of the concept, I still think George my be right in the thought that it won't hold up against the larger, lower priced competitor. It may have provided a better value to Albertsons to have simply added the pharmacy counter and not the whole nine yards.

'Scanner'

"Albertsons is the only retailer in America that has a solid, well-established reputation for both grocery and drug store brands," said Jim Rice, Albertsons Southwest Division president.

Well Gringo, that's fine and dandy if you live in Idaho. But this is El Paso. Go outside your store and take a good look at who the customers are. Now go back in your vanilla store. Now, if you still don't understand what I'm talking about - write me and I will explain. Comprende?

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David Livingston, Principal, DJL Research

They completed the co-branding in the Arizona market a year or more ago. The last time I looked at the data, the division was up more than any other ABS division. Fry's, Safeway and Bashas is down in the market, not Albertsons.

Anonymous

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