Executive Briefings

Merging the Two Albertsons Chains Won't Be as Easy as Splitting Them Up in the First Place

Putting Albertsons back together again won't be as easy as it looks. The grocery chain was split in 2006 between Supervalu and private equity firm Cerberus Capital Management, with both chains using the same logo in different geographic regions. But on January 10, the two owners decided to reunite what will now be a 650-store chain in a complicated deal that leaves only one thing very clear: These money managers aren't thinking about IT when it comes to reassembling the chain.

Yes, the Albertsons logo is the same on both sides. But seven years later, everything from self-checkout to loyalty to POS to prescription systems is now different across the soon-to-be-unsplit chain. And everything will have to be merged"”and fast.

The chain has only been split since 2006. How much could have changed since then? Quite a bit, actually. What's tricky in the case of Albertsons is that, because both versions of the chain kept the same name and logo after the 2006 split, each set of customers thinks they know what to expect in an Albertsons store. Some customers are going to be disappointed. Everyone is likely to be confused"”and the sooner the systems are merged, the saner it will be for them.

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Keywords: retail supply chain, value chain, value chain IT, supply chain management IT, supply chain solutions, supply chain systems, logistics IT solutions

Yes, the Albertsons logo is the same on both sides. But seven years later, everything from self-checkout to loyalty to POS to prescription systems is now different across the soon-to-be-unsplit chain. And everything will have to be merged"”and fast.

The chain has only been split since 2006. How much could have changed since then? Quite a bit, actually. What's tricky in the case of Albertsons is that, because both versions of the chain kept the same name and logo after the 2006 split, each set of customers thinks they know what to expect in an Albertsons store. Some customers are going to be disappointed. Everyone is likely to be confused"”and the sooner the systems are merged, the saner it will be for them.

Read Full Article


Keywords: retail supply chain, value chain, value chain IT, supply chain management IT, supply chain solutions, supply chain systems, logistics IT solutions