Albertsons has launched a new subscription plan called Albertsons for U+ that allows customers to get unlimited same-day delivery for $39 per year.
Customers can upgrade to Flash delivery for $2 more in order to receive deliveries in as soon as 30-50 minutes or less. The new subscription plan also allows for free pickup in as soon as 30 minutes.
David Bishop, partner at Brick Meets Click, described the $39 annual subscription as a “very aggressive deep discount” that likely reflects the company’s ability to fund rapid delivery with the revenues it garners from its retail media network.
Kroger’s Boost membership plan, for example, costs $99 per year. It includes free same-day or next-day delivery on orders over $35, along with free streaming of Disney+, Hulu and ESPN+ and other savings. Walmart+, which also includes streaming, free delivery and other benefits, costs $98 per year, or it can be combined with a Sam’s Club Plus membership for $120 per year. Amazon Prime, meanwhile, costs $139 per year and includes access to its massive streaming service and other perks.
Albertsons said its Albertsons for U+ service will include all of the benefits that its points-based Albertsons forU loyalty program offers, including personalized deals, digital coupons and other opportunities for free and discounted items. The company also said the points from its Albertsons for U+ program do not expire.
“Albertsons for U+ brings together flexible delivery and pickup options at a more affordable annual price,” Albertsons said in a blog post on its website.
The move comes as consumers have embraced rapid grocery delivery and as Albertsons’ largest competitors, including Walmart, Amazon and Kroger, are also promoting the service aggressively.
Walmart said that about 70% of deliveries to customers’ homes were made on the same day or faster during the company’s fiscal second quarter, and the company doubled the number of orders delivered in 30 minutes or less. Kroger, meanwhile, said rapid delivery is expected to play a key role as the company strives to drive comparable-store sales of 3% by 2029.
“We will continue to get faster,” said Nate Faust, the former Walmart executive who recently joined Kroger as executive VP and chief ecommerce officer, during the retailer’s recent Investor Day conference. “Customer expectations on speed of delivery continue to increase every year, every month, every day.”
