Is Albertsons Like A&P

 

Albertsons and Safeway were once iconic industry leaders—much like A&P (The Great Atlantic & Pacific Tea Company) in its heyday. Each dominated their markets for decades but eventually became brands stuck in the middle—caught between discount grocers on one end and experiential, fresh-food-driven competitors on the other. According to Foodservice Solutions® Grocerant Guru® Steven Johnson, the merged Albertsons-Safeway company is showing the same signs of strategic stagnation that once doomed A&P.

A&P’s Lesson: The Cost of Staying the Same

When A&P filed for creditor protection—twice within three years—it wasn’t because customers stopped buying food. It was because customers stopped buying their kind of food. A&P’s brands, including Waldbaums, Food Emporium, Super Fresh, Pathmark, and Food Basics, all failed to evolve with consumer preferences. They doubled down on legacy operations, slotting fees, and center-store inventory instead of embracing fresh, convenient, Ready-2-Eat and Heat-N-Eat solutions.

Déjà Vu for Albertsons?

Fast-forward to 2025. Albertsons, now with banners including Safeway, Vons, Acme Markets, Jewel-Osco, Shaw’s, and more, remains heavily focused on the traditional middle-market grocery model. While that may have worked decades ago, the competitive landscape has transformed:

·       Aldi now operates over 2,800 U.S. stores and continues its expansion into California, pairing low prices with premium private-label offerings.

·       WinCo Foods continues to grow in the western U.S., maintaining a loyal following with its warehouse-style, employee-owned model.

·       Costco, Trader Joe’s, and Wegmans are redefining customer expectations for quality, value, and experience.

·       Amazon Fresh, Walmart, and Instacart dominate the online grocery space with same-day delivery and subscription models.

Meanwhile, consumer preferences have shifted dramatically.

 

Grocerant Guru® Insight #1: Consumers Crave Convenience, Not Compromise

According to Foodservice Solutions® research, more than 74% of U.S. households now purchase Ready-2-Eat or Heat-N-Eat meals weekly. The majority of shoppers under 45 view cooking from scratch as a special occasion, not a daily routine. Yet Albertsons’ fresh-prepared offerings remain fragmented and inconsistent across locations—mirroring A&P’s disjointed approach to innovation.

Grocerant Guru® Insight #2: Private Label Is the New Power Brand

Private labels have evolved from budget alternatives into trust brands. Kroger’s Simple Truth, Walmart’s Great Value, and Aldi’s entire assortment are growing faster than legacy CPG products. Albertsons’ private-label portfolio lags behind competitors both in innovation and marketing. In 2025, private-label sales now account for over 25% of total grocery revenue, but Albertsons hasn’t fully leveraged this high-margin opportunity.

 

Grocerant Guru® Insight #3: The Future Belongs to the Grocerant

The fastest-growing foodservice segment isn’t restaurants—it’s grocerants: grocery stores that blend the convenience of food retail with the culinary freshness of restaurants. Wegmans, Whole Foods, and Hy-Vee have mastered this hybrid model, offering in-store dining, chef-prepared meals, and take-home meal kits. Albertsons, however, continues to focus on center-store sales and loyalty card discounts—yesterday’s tools for yesterday’s customers.

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The Middle of the Market Is a Losing Position

Albertsons faces pressure from all sides. Aldi, Lidl, and WinCo dominate the value segment. Wegmans, Whole Foods, and Sprouts own the fresh, experiential niche. Online disruptors like HelloFresh, Blue Apron, and Thistle continue winning time-starved consumers who want restaurant-quality meals without shopping or cleanup.

As the Grocerant Guru® often says:

“In the age of convenience, being everything to everyone means being nothing to anyone.”

Unless Albertsons invests heavily in grocerant-style offerings—fresh meal solutions, modular meal kits, and frictionless delivery—it risks repeating A&P’s slow fade into irrelevance.

 

The Path Forward

The future of grocery retail belongs to brands that blur the line between retail and restaurant. Those that adapt quickly will thrive; those that cling to the middle will disappear. The question isn’t just is Albertsons the next A&P? — it’s how soon?

Want to future-proof your brand?
Invite Foodservice Solutions® to conduct a Grocerant Scorecard or Program Assessment. Since 1991, Foodservice Solutions® of Tacoma, WA, has been the global leader in the grocerant niche.

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