US Grocer Albertsons Pulls Annual Outlook, Accelerates Turnaround Efforts

3-line summary

• Albertsons withdrew its fiscal 2026 outlook (previously cut to adjusted EPS of $1.75-$1.85 and same-store sales of -0.5% to -1.5%) as rising food and fuel prices squeezed low-income consumers and the company lost market share to Walmart, discounters and private labels, according to Reuters. Same-store sales fell 0.8% in the second quarter; Chairman Vivek Sankaran said market-share trends had fallen behind, adding "We must turn things around."
• The company launched a company-wide business review building on restructuring announced in July, aiming to cut costs and reinvest savings into lower prices and improved store experience, with completion targeted during the fiscal fourth quarter ending February 2027; a comprehensive turnaround plan with short- and long-term financial targets will accompany Q4 earnings. CEO Susan Morris said the company will reduce complexity by cutting layered initiatives, processes and management layers, and will "exit areas that are underperforming," building on July's plans for expanded private label, e-commerce improvements, reorganizing 11 business units into four regions, and centralized merchandising.
• The announcement, made Tuesday, October 13, comes about two years after a federal court blocked Albertsons' proposed $24.6 billion merger with Kroger on antitrust grounds and Albertsons terminated the deal; the report did not describe this review as directly tied to that litigation. Shares reversed early declines to rise 2% on the day, though they remain down 27% year-to-date.

This summary is our own processing of the source article; see the source link below for full context.