Albertson’s Introduces Food/Drug Store in Omaha

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Feb 20, 2002
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Albertson’s, Inc. opens its first combination store format in Omaha under the Albertson’s/Osco banner today. It combines expertise as an independent food operator with that of an independent drug operator, and focuses on shopping convenience, according to Albertson’s. In celebration of the new store format, Albertson’s will donate a truckload of food — approximately 40,000 pounds — to the Omaha Food Bank. The Omaha Home for Boys and Adams Elementary will also both receive $500 gifts from the company.

Albertson’s/Osco doubles the general merchandise product selection while maintaining the store’s food product variety. The new store features a drive-through pharmacy, one-hour photo, seasonal products, and an expanded cosmetics and beauty care department featuring a cosmetician. This will be the tenth Albertson’s location serving Omaha. Eleven Osco Drug stores also currently serve the community.

The combination format was first introduced by Albertson’s Chicago subsidiary,
Jewel-Osco. In November, the company expanded the format to its stores in Tucson,
Arizona and Reno, Nevada.

Moderator Comment: What challenges does Albertson’s
face in achieving greater market share and profitability?

Albertson’s seems to have moved from cost reduction mode
to growth investment. The chain is continuing to expand this dual retail brand
format and it continues to open new fuel centers. These factors combined with
the chain’s recent announcement of a share buy back program indicates that Larry
Johnston (Albertson’s chairman and chief executive) and company believe the
chain is ready to make a new push for market share. [George
Anderson – Moderator
]

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