We review the latest developments at Albertsons, including its third quarter results.
Sales under pressure as traffic declines
Albertsons’ net sales were broadly flat in Q3, falling 0.1% to $13.6bn, with comparable store sales down 1.8%. The retailer saw traffic decline 2.7% in the quarter as its promotional investments failed to resonate with its customers. The retailer mainly saw declines in non-perishable categories, with sales of perishables up 4.3%.
Source: IGD Research
Ecommerce, private brand and loyalty initiatives
There were several highlights for the retailer during the quarter, including launching the roll-out of Plated meal kits in-store, announcing its partnership with Instacart and accelerating the growth of its ecommerce business through expanding its ‘Drive-Up and Go’ program. Albertsons also invested in El Rancho, a Hispanic specialty grocer, increased the penetration of its private brands by 62 basis points and increased the number of households registered in its loyalty programs.
Susan Morris appointed as Chief Operations Officer
Albertsons has appointed Susan Morris as Executive Vice President and Chief Operations Officer, overseeing its supply chain, manufacturing, and operations functions. She will take up the role at the start of the new financial year following the retirement of President and Chief Operating Officer, Wayne Denningham. Morris most recently led the retailer’s west region operations.
Divesting stake in Mexico-based Casa Ley
The retailer has entered into an agreement with Tenedora to sell its 49% interest in Mexico-based food and general merchandise retailer Casa Ley. The deal is valued at $345m. The sale is subject to Mexican antitrust approval, and is expected to close by February 28, 2018. Albertsons gained the interest in Casa Ley following its merger with Safeway in 2015, although the intention had always been to divest it.
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Stewart Samuel, Program Director, IGD Canada: based in Canada, Stewart heads up all of IGD's research and coverage on Albertsons. He is also responsible for shaping IGD's research program across North America. Contact Stewart at [email protected] for further insight on the region's markets, channels and retailers. Follow Stewart on Twitter: @Stewart_IGD
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