Albertsons Takes Store Within Store Route Again

Discussion
Sep 04, 2003
George Anderson

By George Anderson


Office Depot and Albertsons announced on Tuesday a deal for the office supply retailer to provide office and school supplies to the grocery/drug store operator.


According to Reuters, the store within a store concept will be tested in 18 Albertsons’ stores in Chicago, LA and Phoenix. Albertsons, Jewel-Osco, Albertsons-Osco, Sav-on
Drugs and Osco Drug banner stores will be part of the initial pilot.


Albertsons’ deal with Office Depot, the number-two office supply chain in the U.S., is not its first venture into a co-marketing/merchandising arrangement with another retailer
brand. It has struck similar deals in the past with Toys R Us, Krispy Kreme and Starbucks.


Moderator’s Comment: Which company benefits more from this agreement, Albertsons or Office Depot? What are your thoughts on branded store within store
deals such as this?


The deal extends the Office Depot brand. It does not do the same for Albertsons. Ultimately, Albertsons will need to make a name for itself (establish a
clear brand identity) if it wishes to have consumers bypass competitors and shop its banner stores. [George
Anderson – Moderator
]

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