# 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**

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## 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.

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## 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.

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## 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.