Albertsons (ACI.N) has withdrawn its fiscal 2026 financial forecasts as the US grocery retailer launches a comprehensive business review aimed at cutting costs, lowering prices and reversing sluggish sales. The company is facing cautious consumer spending, rising food and fuel costs, and increasing competition from mass retailers such as Walmart, discount chains and private-label brands. Executive Chair Meg Whitman said the company’s market-share trends had lagged and stressed the need to accelerate cost reductions and reinvest savings in competitive pricing and improved store experiences.
The review builds on restructuring measures announced in July and is expected to conclude during the fourth quarter ending February 2027. Albertsons plans to unveil a comprehensive turnaround strategy alongside revised short- and long-term financial targets during its fourth-quarter earnings call. CEO Susan Morris said the company had accumulated too many initiatives, processes and layers of complexity, increasing costs and slowing decision-making. The retailer also plans to exit underperforming areas, expand private-label offerings, strengthen e-commerce and simplify its organizational structure by consolidating 11 divisions into four regions and centralizing merchandising.
The turnaround comes nearly two years after Albertsons’ proposed $24.6 billion merger with Kroger collapsed following a federal court’s decision to block the deal on antitrust grounds in December 2024. Albertsons reported a 0.8% decline in same-store sales for the second quarter ended September 12, although adjusted earnings of 36 cents per share exceeded analysts’ expectations of 33 cents. Its shares rose 2% on Tuesday, recovering from premarket losses, but had fallen 27% this year through the previous close. The company’s renewed strategy reflects growing pressure to regain market share, improve operational efficiency and restore sustainable growth amid an increasingly competitive grocery market.
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