As Albertsons reported its second quarter performance, it lowered its guidance for full year identical stores sales.
Expecting full year identical store sales of 1.0-1.3%
Albertsons’ second quarter sales increased by 1.4% to $14.0bn, with identical store sales up 1.0%. While this was an improvement on the first quarter’s 0.2% growth, the retailer has lowered its guidance for full year. It expects identical store sales to be in the range of 1.0-1.3%, compared to its earlier forecast of 1.5-2.0%.
Ecommerce sales up 113%
Ecommerce sales were up 113% in the quarter, reflecting the acquisition of meal kit company, Plated. The business has also been expanding its core grocery ecommerce operation. This includes its store pickup operation, Drive Up & Go and home delivery in partnership with Instacart. Recently, Albertsons also recently launched a new online organics marketplace in partnership with Instacart.
Source: IGD Research
Private label hits 25% of sales
The retailer continued to make progress with developing its private label offer. Penetration increased 44 basis points to represent 25.0% of sales. This is the highest level achieved within the business, reflecting Albertsons’ optimisation of Safeway’s expertise in this area since the business was acquired. In addition to expanding the range across the entire network, the retailer recently introduced a new, super premium range, Signature Reserve. While the brand was initially launched within the ice cream category, the retailer plans to introduce additional products in other categories including pasta, pasta sauces, coffee and tea.
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