Grocery Roundup: Albertsons Boosts Ad Offerings; Kroger Continues eCommerce Fulfillment Center Rollout

As food prices rise, many grocers are looking to supplement their sales revenue by growing their advertising businesses.

Albertsons Media Collective, the retail media arm of grocer Albertsons Companies, which has more than 2,200 locations across the United States, announced Tuesday (June 21) that it is partnering with advertising technology company The Trade Desk to offer audience performance measuring tools for advertisers.

“Albertsons Media Collective and The Trade Desk are redefining what it means for advertisers to reach the right audience and measure their marketing campaigns,” Kristi Argyilan, senior vice president of retail media at Albertsons, said in a statement. “Our shared philosophy on solving the issues on identity, transparency and inefficiencies that currently exist within the advertising ecosystem will create opportunities for brands to embrace the power of the open internet that drives precision and relevance.”

Brands leveraging the tools the partnership provides include major consumer-packaged goods companies PepsiCo and Unilever.

“The partnership between The Trade Desk and Albertsons Media Collective is enabling brands to drive better control and decision making,” Shyam Venugopal, senior vice president of global media and commerce capabilities at PepsiCo, commented, “as well as greater transparency across our media buys to give us the ability to leverage first-party data to reach the right consumer.”

Kroger Announces eCommerce Fulfillment Center in Colorado

Kroger, the United States’ leading pure-play grocer, is continuing its rollout of automation-powered distribution centers for delivery orders placed online, so-called customer fulfillment centers (CFCs), in partnership with United Kingdom-based grocery technology company Ocado Group.

On Tuesday, less than two weeks after the grocer announced the expansion of its Kroger Delivery business to South Florida with a new 60,000 square-foot eCommerce CFC, the company shared that it is also opening a CFC in Colorado, a 300,000 square-foot facility in Aurora.

“We are thrilled to expand and introduce our innovative Kroger Fulfillment Network to one of the fastest growing areas in the country and have the opportunity to grow our workforce,” Gabriel Arreaga, Kroger’s senior vice president and chief supply chain officer, said in a statement. “Kroger Delivery can accelerate its commitment to provide exceptional customer service through our state-of-the-art facility and end-to-end cold solutions, including custom-built refrigerated vans, to ensure our delivery customers receive the freshest products directly to their doorstep throughout the Denver region.”

Related news: Kroger Expands Grocery Delivery

The share of consumers ordering groceries for delivery online is on the rise. The May edition of PYMNTS’ ConnectedEconomy study, The ConnectedEconomy Monthly Report: The Brick-and-Mortar Economy Goes Digital , which drew from a survey of more than 2,600 U.S. consumers about their digital habits, found that 38% of consumers ordered groceries digitally for home delivery in April, up from 35% in March and 33% in February.

Read more: 19M More Consumers Went Online to Bank, Buy and Pay Bills in May 2022

“As we continue to expand our nationwide CFC program, Kroger and Ocado Group are now live with five state-of-the-art fulfilment centers across the USA,” Luke Jensen, CEO of Ocado Solutions, commented. “As this site ramps up, Kroger Delivery will bring a world class online experience to homes across the Denver Metro area, powered by some of the most advanced technology available anywhere in the world.”

Sprouts Joins Grocers Accepting EBT SNAP for eCommerce Orders Through Instacart

Throughout the past several years, as eCommerce sales have made up an increasingly large share of the total grocery industry, grocers have been looking to close the gap between Electronic Benefits Transfer Supplemental Nutrition and Assistance Program (EBT SNAP) in stores and online, adding the payment option to their digital channels.

Most recently, Sprouts Farmers Market, which has about 380 stores across 23 states, announced last Thursday (June 16) that it is accepting EBT SNAP payments through Instacart for same-day delivery and curbside pickup orders.

“Sprouts is a leader in making the highest quality fresh foods accessible to all. Online shopping for delivery and pickup offers our shoppers that accessibility and convenience to fit any lifestyle,” Nick Konat, Sprouts’ president and chief operating officer, said in a statement. “Through this expanded partnership with Instacart, we can offer our customers the option to use their SNAP benefits when ordering their fresh and nutritious foods online, allowing them greater convenience, accessibility and affordability.”

Sam’s Club Looks to Drive Membership with Low-Cost Offerings

As food inflation has many grocery shoppers seeking out lower-cost alternatives, warehouse club chain Sam’s Club is leveraging its scale to draw shoppers away from competitors with low-price offers.

The Walmart subsidiary, which has almost 600 locations in the U.S. and Puerto Rico, announced last Thursday that it is offering a lower price annual membership ($8) for new members for a limited time, looking to drive signups before the Fourth of July.

“Our members love a cause for celebration, and they’ve told us they plan on getting together with family and friends this Fourth of July – that insight has inspired our merchants to curate and develop unique items to meet their needs,” the warehouse club chain’s Chief Member and Marketing Officer Ciara Anfield said in a statement.