Albertsons Cuts Membership Price 61% as Delivery Costs Rise

albertsons customer retention foru+ freshpass grocery delivery membership benefits membership pricing safeway subscriber loyalty subscription economics subscription pricing Oct 26, 2026

The grocery chain is replacing its $99 FreshPass subscription with a $39 annual plan, changing the benefits as expenses from online grocery orders put pressure on profits.

Albertsons is cutting the annual price of its grocery membership from $99 to $39, even as rising expenses associated with online orders put pressure on profits. The new forU+ program replaces FreshPass with a lower-priced membership focused on delivery and pickup, while removing several benefits existing subscribers may have come to value.

The change comes as Albertsons, which operates Safeway, Vons, Jewel-Osco and other grocery chains, works to improve sales and control expenses.

A Lower Price, but a Different Membership

Albertsons says it redesigned FreshPass to make delivery and pickup more affordable. Customers will still receive free delivery on qualifying grocery orders of $30 or more, with free rapid pickup available at participating locations.

Here's how the plans compare:

Benefit	FreshPass	New forU+
Annual price	$99	$39
Monthly option	$12.99	Not offered
Free delivery on qualifying $30+ orders	Yes	Yes
$5 monthly grocery credit for annual members	Up to $60/year	Removed
Extra loyalty points, selected product discounts and Starbucks perks	Included	Removed
Free rapid pickup	Not a listed benefit	Included where available
Loyalty points don't expire while subscribed	Yes	Yes

Here's where the math gets interesting. Albertsons is reducing the annual membership fee by $60, exactly the maximum yearly value of the grocery credits it's eliminating.

Those credits had restrictions. Members had to claim and use them each month on qualifying purchases, and unused credits expired. For members who joined on or after September 16, 2024, the credits generally couldn't be used for delivery orders.

Someone who regularly used the credits and other discounts could find the new membership less valuable, despite the price reduction. A customer who rarely used those perks may prefer paying $39 for delivery and pickup.

There's also a difference between Albertsons' free and paid loyalty programs. The free forU program offers personalized discounts, coupons and rewards. The new $39 forU+ membership adds delivery and pickup benefits to that existing program.

Why Albertsons Is Making Changes

In its October 13 earnings report, Albertsons said sales at established stores fell 0.8%, while digital sales grew 11%. The growth in online orders has also brought higher delivery and order-handling expenses, contributing to pressure on profit margins.

The company is reviewing expenses and looking for ways to improve its performance. Customer loyalty is another priority. Management says shoppers who actively participate in its free loyalty program spend substantially more than those who don't, although that doesn't mean paid membership causes higher spending.

Albertsons hasn't said these financial pressures directly prompted the FreshPass redesign. Its stated goal is to make delivery and pickup more affordable. Still, the decision comes as the company is trying to improve sales and manage the costs associated with its growing online business.

What Happens to Existing Members?

Regular annual FreshPass subscribers will keep their current benefits until renewal, when they'll automatically move to forU+ unless they cancel. Monthly subscribers face a bigger change. With no monthly option under forU+, they'll need to choose the $39 annual membership or their subscriptions will end.

The separate discounted FreshPass membership for qualifying SNAP recipients is also being discontinued. Those customers previously paid $49 annually or $5.99 monthly. They'll keep their existing benefits until their plans end, then must enroll in the new $39 annual membership if they want to continue.

The transition could produce different reactions from customers who joined FreshPass for different reasons, particularly those accustomed to monthly billing or regularly using the discontinued perks.

INSIDER TAKE

Albertsons may be changing which customers find its paid membership attractive. A simpler, cheaper offer could bring in shoppers who mainly want affordable grocery delivery, while some longtime FreshPass members may question whether the replacement offers enough value to renew.

It's an interesting decision given the company's financial pressures. Albertsons is collecting less in membership fees while removing benefits that cost money to provide. But the face value of a customer discount isn't necessarily what it costs the company, and we don't know how frequently members used those perks.

The question is whether a lower-priced membership can bring in more customers and encourage more shopping without making the program more expensive to operate. Albertsons also has to find out how existing members respond when their benefits and, for monthly subscribers, payment options change.

Membership growth, renewal rates and shopping frequency will help tell that story, although Albertsons hasn't disclosed the program-level figures needed to judge the results. This is one worth returning to as the new membership takes hold.

Related Member Resources

Albertsons is lowering its membership price while changing what subscribers receive. A cheaper offer won't necessarily feel like a better deal to every customer, especially when existing members face different renewal terms. These resources help operators examine both the value of the new offer and the experience of moving subscribers to it.

How Subscription Pricing Works: A Beginner’s Guide (Includes Worksheet)
The guide and worksheet help teams examine how price, included benefits, customer value and operating costs fit together. For a change like Albertsons' membership redesign, they offer a way to assess what customers are actually paying for and whether a lower-priced offer makes financial sense.
Subscriber Journey Mapping & Audit Guide (Includes Worksheet): Find Friction, Document the Experience and Reduce Risk
This guide and worksheet help teams document what subscribers see and experience as their relationship with a business changes. Albertsons is moving annual members automatically while asking monthly subscribers to choose a new plan. Mapping those different paths can reveal confusing notices, unexpected benefit changes and places where customers might cancel rather than continue.