Dive Brief:
- Albertsons is growing its loyalty and personalization efforts as part of its strategy to maximize customer lifetime value, according to CEO Susan Morris on a Q2 2025 earnings call Tuesday.
- Membership in the Albertsons for U loyalty program rose 13% year over year to 48.7 million, according to a company earnings report. The company recently enhanced its program with the ability to earn cash back from travel bookings.
- The grocery chain’s conversational AI search tool, called Ask AI, is playing a role in CX improvements as well. “We're not only selling food — we're simplifying meal planning, making shopping easier and more convenient,” Morris said during the call.
Dive Insight:
Investments in loyalty and personalization are combining with Albertsons’ promotional strategy to drive deeper customer engagement and frequency, according to Morris.
Digital sales, which were a bright spot in a quarter of otherwise modest growth, appeared to benefit from the emphasis on personalization. Same-store sales grew 2.2% year over year, while digital sales jumped 23% year over year, according to the earnings report.
Technology like Ask AI is helping Albertsons improve personalization no matter where customers shop, according to Morris.
“Customers no longer need to know exactly what they're looking for in our aisles or online,” Morris said. “They can simply ask, ‘What are healthy snacks for kids,’ or say, ‘My holiday party is tomorrow, and I'm not prepared.’ Ask AI will offer tailored ideas and guide them to relevant products.”
The company is scaling AI for use cases beyond product discovery. The technology is being implemented across the business, including in Alberterson’s data analysis and customer service functions, according to Morris.
The Albertsons for U program is also driving engagement, according to Morris. Customers receive personalized discounts through the loyalty program, and nearly 2 in 5 engaged households are using the automatic cash-off feature to redeem loyalty points for discounts at checkout.
