Albertsons: Heck No, We Won’t Go

Discussion
Jan 30, 2004
George Anderson

By George Anderson


Larry Johnston, chairman, chief executive officer and president of Albertsons, does not care what’s being said in grocery industry and analyst circles.


The chain is staying put in Dallas-Fort Worth and it is taking the steps it deems necessary to set the division back on the course to increased market share and profits.


Albertsons, which had been the leading grocer in North Texas for many years, has slipped recently, while Wal-Mart has taken over the number one position in the market.


According to the Dallas Morning News, Albertsons is looking to make it back to number one by “reorganizing its Dallas-Fort Worth division, naming a new president, eliminating layers of management and giving more control to its store managers in Texas, Oklahoma, Louisiana and Nebraska.”


“With fewer management layers and wider spans of control, our division team will be able to improve store-level execution, lower costs and react more quickly to the needs of our customers,” said Mr. Johnston, chairman, chief executive officer and president of Albertsons.


Moderator’s Comment: Why has Albertsons lost its lead in the Dallas-Fort Worth market to Wal-Mart? What will it take for the grocery chain to reclaim
the top spot?


Despite the manage-speak at chains such as Albertsons, we can’t help thinking after watching what they do that they all want to be Wal-Mart when they grow
up.


Albertsons would be better off following the lead of the chain voted most likely to buy their D-FW division – HEB.
George
Anderson – Moderator

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