BOISE, ID – In recent years, Albertsons Companies Inc. has had one of the more storied paths to its current success, with dramatic reversals of fortune and a strong resurgence in very little time.
So, is it shrewd mergers and acquisitions? Maybe. But also—according to a recent report by news source Idaho Statesman's Jerry Brady—“a deep trust in people” and willingness to cede control.
In 2013, Albertsons had contracted to 192 locations and $4 billion in sales, with sister stores in Idaho taking a sad turn.
But today, Albertsons is thriving. The company has 2,300 stores, some $60 billion in sales, and operates under 18 banners—many of which had been successful but have recently fallen on hard times.
Rather than rebrand these stores, though, and mount an expensive branding campaign, Albertsons CEO Bob Miller elected to do the opposite: keep the chains’ names and rebuild the businesses' formerly loyal customer base.
Miller and Albertsons decided to provide patient support and capital, decentralize their business structure, and keep management and employees in place and in control.
The result, the report points out, has been extraordinary growth over a short period.
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