Albertsons Companies, Inc.

What they do

Albertsons operates food and drug retail stores offering grocery products, general merchandise, health and beauty care, pharmacy, fuel and other items through stores and digital channels. As of February 28, 2026, the company operated 2,244 stores in 35 states and the District of Columbia under banners including Albertsons, Safeway, Vons, Jewel-Osco and Shaw's. It also operated 1,713 in-store pharmacies, 1,240 branded coffee shops, 405 fuel centers, 22 distribution centers and 19 manufacturing facilities, with approximately 280,000 employees. Its stores are reported in one reportable segment, and it offers delivery in more than 2,200 stores and curbside pickup in more than 2,100 stores.

Revenue drivers

• Core grocery retail — Sales of grocery, general merchandise and health and beauty products through 2,244 stores and digital channels; identical sales declined 0.8% in Q1 fiscal 2026.
• Pharmacy — Operated 1,713 in-store pharmacies as of February 28, 2026; pharmacy sales continued to grow in Q1 fiscal 2026 despite Inflation Reduction Act headwinds.
• Digital and eCommerce — Delivery and curbside pickup across more than 2,200 stores, with delivery orders placed through the company's platform and partners Instacart, DoorDash and Uber; digital sales increased 13% in Q1 fiscal 2026.
• Own Brands — Private-label portfolio of more than 14,000 unique items, including Signature SELECT, O Organics, Lucerne and Signature Care, sold through the company's stores.

Recent performance

For the 16 weeks ended June 20, 2026 (Q1 fiscal 2026), net sales and other revenue rose 0.2% to $24,941.6 million, driven by higher fuel sales while identical sales fell 0.8%. Net income was $85 million, or $0.17 per share, with adjusted net income of $210 million, or $0.42 per share, and adjusted EBITDA of $1,013 million. Gross margin rate declined to 26.6% from 27.1%, and selling and administrative expenses rose to 25.6% of net sales and other revenue from 25.4%. Interest expense, net increased to $166.7 million from $141.8 million on higher average outstanding borrowings. For fiscal 2026, annual revenue was $83.17 billion and net income was $217.4 million.

Strategy

The company's business strategy centers on driving customer growth and engagement through digital connection, enhancing the customer value proposition, modernizing capabilities through technology and driving productivity. It operates under a 'Locally Great, Nationally Strong' structure intended to empower local decision-making while leveraging national scale, technology and analytics. In July 2026, Albertsons announced ACI Edge, which includes simplifying the operating model by transitioning from eleven divisions to four regions and centralizing center-store merchandising. Management is accelerating investments in customer value ahead of expected productivity benefits. The Own Brands portfolio and loyalty and digital platforms support personalization, targeted marketing and merchandising decisions.

Risks

• Consumer and macro pressure — Management cited softer industry unit trends and a more cautious consumer, and the 10-K notes consumers may reduce non-essential spending or increasingly rely on food discounters.
• Food inflation and deflation — The 10-K states food deflation could reduce sales growth and earnings, while food inflation could reduce gross margin rates and consumer spending.
• Productivity initiative execution — The 10-K warns that savings from productivity initiatives are management estimates and may not be realized in the anticipated amounts or timeframe, and could involve up-front costs or operational disruptions.
• Pharmacy reimbursement and IRA — The Q1 fiscal 2026 release attributes weaker selling and administrative expense rate partly to the effect of the Inflation Reduction Act on pharmacy sales growth, with ongoing IRA headwinds noted.

Outlook

Management revised its fiscal 2026 outlook, saying it is accelerating investments and operational changes to strengthen its customer value proposition and competitive position. It said it is choosing to invest ahead of expected productivity benefits because it believes these actions will improve its growth trajectory. The company cited continued softness in industry unit trends and a more cautious consumer as reasons for the revision.