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Plated scales back retail distribution

Albertsons Cos. subsidiary rethinks its in-store strategy

Russell Redman

March 29, 2019

2 Min Read
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Meal kit provider Plated, part of Albertsons Cos., is shrinking its retail distribution as the company reassesses its in-store market strategy.

A Plated spokeswoman confirmed Friday that the New York-based company’s meal kits are no longer sold at stores in the Boise, Idaho, area, where Albertsons is based.

Albertsons announced the national rollout of Plated meal kits to its stores last April, at which time the supermarket retailer had the kits in 20 Safeway stores in Northern California and 20 Jewel-Osco stores in the Chicago area. The company said Plated kits would be available in select Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Haggen stores by the year’s end.

As of late January, Plated meal kits were sold at more than 300 Albertsons Cos. stores, and the retailer has five Plated fulfillment centers. Plated's online subscription service is across all continental U.S. states. Albertsons acquired Plated in September 2017.

“Plated has enjoyed the ability to test and learn on a large scale because of Albertsons Cos.’ expansive footprint that covers a wide range of markets and store brands. As a result of our testing, we'll continue to offer Plated in select stores while we temporarily reduce the overall scope of Plated's retail distribution as we evolve its in-store presence,” the Plated spokeswoman said in a statement.

Related:Plated CEO Josh Hix steps down

“This shift will allow us to focus on innovation for the future expansion of Plated within the Albertsons Companies ecosystem,” she explained. “We remain committed to growing Plated to serve customers in new and exciting ways.”

Albertsons said in January that Plated co-founder and CEO Josh Hix had left and that another chief executive wouldn’t be appointed. Nick Taranto, who co-founded Plated in 2012 with Hix, left the company in October. Pat Brown, group vice president of strategic business initiatives at Albertsons Cos., was named to oversee the Plated business, which will continue to operate under its brand within the Albertsons Cos. organization.

According to market researcher Nielsen, sales of in-store meal kits totaled $93 million for the 52 weeks ended Dec. 29, 2018. At the same time, in-store meal kit users jumped by 2.2. million households in less than a year, accounting for 60% of growth in meal kit customers.

Most meal kit sales took place online in 2018, but growth was seen in both the exclusively in-store and combined online/offline spaces, Nielsen noted. Last year, 60% of shoppers bought meal kits exclusively online, compared with 32% in-store and 8% both online and offline. That compares with 67% online-only, 30% in-store and 3% online/offline in 2017.

Related:Albertsons, Plated launch national retail rollout

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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