Albertsons launches $39 delivery and pickup subscription

By James Calloway

Albertsons will charge $39 a year for Albertsons for U+, a same-day grocery delivery and pickup subscription the company announced late last week. The paid program gives members the same benefits as Albertsons’ existing free loyalty program.

According to an Albertsons press release, U+ adds unlimited free delivery on grocery orders totaling more than $30. The press release says members can upgrade to Flash rapid delivery for $2. It also covers same-day pickup through the grocer’s Flash service. Members can use either fulfillment option while retaining the standard loyalty offers.

What does Albertsons for U+ include?

Albertsons said members can use free rapid Flash pickup, which can be ready in as soon as 30 minutes. Loyalty points under the program do not expire.

The company also includes personalized deals, digital coupons, rewards, a birthday treat and a free monthly item. These benefits connect delivery and pickup with the loyalty features shoppers already receive through Albertsons’ free program.

The structure gives members a reason to use Flash for urgent baskets while keeping access to routine offers and rewards. It also gives Albertsons an annual fee tied to digital fulfillment.

How does U+ differ from FreshPass?

Albertsons confirmed that U+ will replace FreshPass. The grocer debuted FreshPass just over five years ago. FreshPass cost $12.99 per month or $99 per year.

U+ lowers the annual subscription price by $60. It also puts same-day delivery and pickup at the center of Albertsons’ paid membership.

Why did Albertsons launch U+ now?

Albertsons announced the subscription at a time of lackluster financial performance. During its latest earnings call earlier this month, the grocer reported comparable-store sales down just under 1%. Net sales and other revenue declined 0.1%.

Digital sales rose 11%, according to the company’s latest results. That increase gives Albertsons a digital growth area to support its wider effort to improve financial performance. U+ gives the grocer a way to capitalize on that momentum.

What broader changes is Albertsons pursuing?

Albertsons executives told investors earlier this month that they intend to improve financial performance by cutting expenses and simplifying the business. During the company’s second-quarter earnings call, executives also said the grocer wants to lower prices and enhance the in-store experience.

The company is also seeking more store traffic and market share. U+ fits within those goals by offering a paid delivery and pickup option alongside loyalty rewards. Its commercial value will rest on whether members use those options enough to support the company’s traffic and market-share goals. That test extends beyond delivery speed because Albertsons is pursuing an overall financial recovery.

U+ now forms part of a broader plan that combines cost cuts, lower prices, store improvements and digital service. The next earnings results should show whether the subscription supports higher traffic and market share.