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Albertsons becomes latest Microsoft retail partner

Pact follows IT giant’s recent deals with Kroger, Walgreens, Walmart

Russell Redman

January 26, 2019

3 Min Read
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Joining other big retailers looking to thwart Amazon’s grocery expansion, Albertsons Cos. has signed a three-year agreement to make Microsoft Azure its preferred cloud computing platform.

Microsoft Corp. and Albertsons confirmed the deal on Friday after Anuj Dhanda, chief information officer at the Boise, Idaho-based supermarket company discussed the partnership in an interview with CNBC.

Anuj_Dhanda_Albertsons_CIO.pngThough still running some of its own data center infrastructure, Albertsons aims to significantly expand its implementation of Microsoft’s Azure, which already had been used for certain workloads, Dhanda (left) told CNBC. The retailer also plans to have employees subscribe to the Microsoft 365 office/productivity software service.

Albertsons, which has been a Microsoft Windows and Office user, decided to go with Azure because of Microsoft’s technology prowess and track record with enterprise-level projects and large retailers, according to Dhanda.

Another reason for teaming up with Microsoft was that it’s not a competitor, he said in the CNBC report, referring to Whole Foods Market parent Amazon.com Inc. and its fast-growing Amazon Web Services (AWS) tech services arm. He noted that Amazon's rapid expansion into retail grocery has spurred Albertsons to upgrade its IT infrastructure and shopping experience.

Related:Kroger, Microsoft partner on retail-as-a-service platform

Besides ramping up use of Azure — including for the rollout of a mobile app that lets customers pump and pay for fuel — Albertsons aims to leverage Microsoft artificial intelligence (AI) technology and could work with the company on checkout-free payment in stores, Dhanda told CNBC. The retailer had said during an investor presentation in May that it was testing cashierless, Amazon Go-like technology.

Overall, Albertons Cos. operates almost 2,300 stores in 35 states and the District of Columbia, spanning more than 20 retail grocery banners, including Albertsons, Safeway, Vons and Jewel-Osco.

Recently, Microsoft has drawn several major food, drug and mass retailers to its cloud platform.

Earlier this month, the company unveiled a partnership with The Kroger Co. to jointly develop and market a retail-as-a-service (RaaS) product for the retail industry. Plans call for the Azure-based solution to be piloted at a Kroger store in Monroe, Ohio, and a QFC store in Redmond, Wash.

And last week, Microsoft and Walgreens Boots Alliance (WBA) announced a seven-year partnership to develop new delivery models, technology and retail innovations to improve health care. This year, Walgreens is slated to pilot up to 12 store-within-a-store "digital health corners" to merchandise and sell health care-related hardware and devices. WBA also agreed to migrate most of its IT infrastructure to Azure — including new retail, pharmacy and business services platforms and data and analytics capabilities — as well as use Microsoft’s AI technology and 365 services.

Related:Walmart enters strategic partnership with Microsoft

Walmart named Microsoft as its preferred and strategic cloud partner in mid-July. The five-year pact calls for the retail giant to roll out Microsoft’s cloud solutions for customer-facing services and internal business applications, including Azure and Microsoft 365. The initiative also includes migrating much of Walmart.com and SamsClub.com to Azure, the companies said, adding that cloud-powered checkout will enable Walmart to grow with rising customer demand and reach more global markets.

Read more about:

Walgreens Boots Alliance

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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