Albertsons uses C2FO to support suppliers and improve EBITDA

Albertsons Companies is one of the largest food and drug retailers in the United States with 2,260 stores across 35 states and operating under 20 banners that include Albertsons, Safeway and United Supermarkets. For the competitive food and drug retail market, innovation isn’t optional. Albertsons has taken this to heart, focusing on optimising everything from customer experience to cash management.

“The more tools we have at play that
help us use cash in a more productive
manner gives us the power to control
and mitigate outside inuences.”

Gregg Maxwell, CPA Group Vice
President, Albertsons Companies

About Albertsons

Albertsons’ shared services team took an outside-
in approach to optimising supplier relationships
and adding value back to the bottom line.

Outcomes included the following:

• Flexible cash management became the key to
surviving market volatility.

The Challenge

• EBITDA improvement measured the success of
innovative programmes rolled out.

• Supplier adoption of the new nance
programme strengthened business
relationships.

Albertsons had built an effective cash
management strategy, but since the food and
drug retail industry is continually evolving,
the company’s strategy had to adjust with the
landscape. Albertsons’ price competition remains
erce, especially as more online giants enter
the food retail category. Consumer preferences
and expectations continue to vary not just for
products, but services and experiences. Also,
the industry faces volatility from rising costs,
disruptions, tariffs, policy changes and economic
proles of consumers. This volatility also impacts
Albertsons’ suppliers that are critical for on-time
delivery of quality products.

Despite these industry challenges, stakeholders of
this leading retailer knew they could expect growth
with an evolved cash management strategy that
included the following:

Controlled cash ow to suppliers

Improved EBITDA

Consistent cash ow to suppliers was required to
accompany recent terms standardisation efforts.

Improvement in this key metric demonstrated
overall gains in the company’s nancial
performance.

Increased nancial exibility

Flexibility was the key to combating unpredictable
market volatility.

To meet these goals, Albertsons reviewed four
ways to unlock the company’s AP: supply chain
ance, P-cards, sliding scale dynamic discounting
and C2FO’s Dynamic Discounting.

The Solution

Albertsons wanted to meet its challenges with
the most risk-free, growth-based funding solution
available. The company saw an opportunity
to enhance its cash management strategy by
leveraging accounts payable.

C2FO’s solution delivered in ve areas:

1. Proven track record of supplier adoption, and
all supplier support was provided by C2FO.

2. Ability to generate substantial returns to impact
EBITDA metric.

3. Strong recommendations from peers, in
addition to its existing supplier base.

4. Quick programme launch, avoiding any internal
process changes from any department.

5. Financial exibility to manage against the
volatility in the food and drug retail sector.

The Results

Albertsons’ marketplace through C2FO received
overwhelmingly positive feedback from suppliers
that valued affordable access to early payment
and a clear view of their accounts receivable.

By the Numbers

Greater Than Expected Return
2.5X
Albertsons generated discount income immediately after the programme launch.

Months to ROI
3
Returns from the programme launch were the strongest of any of Albertsons’ partnerships.

Headcount Required
0
C2FO provided supplier support and management of the programme to ensure it met and exceeded goals.

Higher Than Targeted Adoption
80%
Supplier adoption exceeded expectations with all onboarding performed by C2FO.

Weeks to Launch
8
C2FO executed the implementation, requiring only a simple le exchange from
Albertsons’ ERP system.

About C2FO

C2FO is the world’s on-demand working capital platform, providing fast, exible and equitable
access to low-cost capital to nearly 2 million businesses worldwide. Using patented Name Your
Rate technology and a suite of working capital solutions, companies can get paid sooner by the
world’s largest enterprises — unlocking billions in risk-free capital. C2FO’s mission is to ensure that
every business has the capital needed to thrive and has delivered more than $220 billion in funding
around the world. Founded in 2008 and headquartered in Kansas City, USA, with ofces around the
globe, C2FO is working to build a better, more inclusive nancial system every day.