Microsoft Azure (Microsoft) > Case Studies > Albertsons and Microsoft Partner on Cloud Adoption for Digital Transformation

Albertsons and Microsoft Partner on Cloud Adoption for Digital Transformation

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Technology Category
  • Analytics & Modeling - Machine Learning
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • E-Commerce
  • Retail
Applicable Functions
  • Product Research & Development
  • Sales & Marketing
Use Cases
  • Time Sensitive Networking
  • Virtual Training
Services
  • Cloud Planning, Design & Implementation Services
  • Training
About The Customer
Albertsons Companies is a leading supermarket chain based in Boise, Idaho. Founded in 1939, the company operates more than 2,200 supermarkets under 20 banners across 34 states and in the District of Columbia. Albertsons is the second-largest supermarket chain in North America and one of the largest retail employers in the United States, with approximately 300,000 employees. The company was looking to modernize its operations and enhance its omnichannel experiences with more personalized customer marketing.
The Challenge
Albertsons Companies, a major supermarket chain in North America, was facing the challenge of modernizing its operations to meet the rapidly changing market demands. The onset of the COVID-19 pandemic accelerated the need for this transformation as online orders surged by 240 percent in a few months. The company needed to operate and innovate faster to stay competitive and meet the growing customer demand for online shopping. Albertsons decided to migrate its on-premises data center to the cloud to leverage the scalability, flexibility, resiliency, and agility offered by cloud technologies. However, the company needed expert assistance to ensure a smooth and successful transition to the cloud.
The Solution
Albertsons partnered with Microsoft Industry Solutions to migrate its entire data center to Microsoft Azure. The first step was to establish the foundational technology infrastructure necessary for a successful digital transformation across the entire business. The Microsoft team executed an agile, holistic, and comprehensive Azure Cloud Foundation program in just over nine months, enabling Albertsons to meet the increased demand for online shopping during the pandemic. Microsoft also provided training to Albertsons employees to ensure a frictionless transition to Azure. The training included shadowing opportunities, meetings with product teams, and formal classroom-style training. The Microsoft Modern Service Management (MSM) team also helped Albertsons to operationally monitor and support the technologies and digital e-commerce platform.
Operational Impact
  • The migration to Microsoft Azure has enabled Albertsons to quickly adapt to the changing market demands and meet the increased customer demand for online shopping. The company has been able to provide safe shopping options such as Drive-up and Go, curbside pickup, and home delivery during the pandemic. The transition to Azure has also paved the way for Albertsons to leverage advanced technologies like containerization, artificial intelligence, machine learning, and deep analytics to enhance customer communications and improve the in-store and online shopping experience. The Cloud Foundation built by Albertsons will also enable future business scenarios and innovative ways of meeting customer needs.
Quantitative Benefit
  • Online orders increased by 240 percent during the COVID-19 pandemic.
  • In the third quarter of Fiscal 2020, Albertsons reported an increase of 12.3 percent in Identical Sales Growth and a 225 percent rise in digital sales.
  • Albertsons plans to be completely cloud-based by 2022, which will save costs, time, and other valuable resources.

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