BOISE, Idaho -- Albertson's here said last week it brought its online ordering and delivery system, Albertsons.com, previously available only in Seattle, to the San Diego market last week.
Analysts told SN the move shows the company's determination to grow its Internet grocery business as an additional customer service, although not necessarily a profitable one -- at least so far.
Online shoppers in San Diego County are now able to go on the Internet to order any item available in an Albertson's store at the store price, the company said, adding that the orders will be filled at five Albertson's fulfillment stores.
Shoppers will have a choice of same-day home or office delivery, or they will be able to pick up orders the same day at any of the 38 Albertson's in San Diego County. The fee is $9.95 for delivery, $5.95 for store pickup.
Andrew Wolf, equity analyst, BB&T Capital Markets, Richmond, Va., told SN he thought the company was adding the service in San Diego because of the region's demographics.
"I would imagine they are going after either the high-income demographic or the elderly, retired residents or both," he said. They want to see if those are groups that will pay for the service.
"They think there will eventually be a large enough market so they can make a little money doing it."
Wolf said he did not believe the Albertsons.com Seattle operation was profitable yet. "I don't think they are making money in Seattle, but I don't think they're losing a lot either," he said. "It's a service add-on to their business, and they want to be in the game. They want to be a service provider."