Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Thursday, April 19, 2001   
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Albertson’s decides stores are the best source for fulfilling online orders

Supermarket chain Albertson's Inc. has decided to fulfill online orders from five Seattle stores rather than from a distribution center, a move that Albertson’s says will leverage existing real estate investments and achieve economies of scale.

"As Albertson's dot-com business continues to grow, we strive to find new and better ways to continue providing the excellent customer service our customers have come to expect," said Matt Muta, vice president of e-commerce and Internet. "We are excited about this new format because it allows us to leverage Albertson's existing real estate assets and gain further economic efficiencies in contrast to our pure play competitors. Additionally, it allows us to maintain top-quality service to our dot-com customers while doubling the product selection."

Albertsons launched Albertsons.com for Seattle customers in November 1999. The stores that will fulfill the orders were strategically selected based on the concentration of existing dot-com customers to help provide a quick response and minimal drive time. Customer also may pick up their groceries at 36 stores in western Washington.

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