Latest news with #Albertsons'
Miami Herald
15-07-2025
- Business
- Miami Herald
Albertsons posts a strong Q1 as pharmacy and digital operations steam ahead
Dive Brief: Albertsons generated $24.9 billion in net sales and other revenue during the first quarter of fiscal 2025, up 2.5% compared with the same period last year, the supermarket chain reported sales moved ahead at a 2.8% clip, twice the rate it posted for the metric during Q1 of 2024, driven by double-digit growth in pharmacy and e-commerce raised its expectations for identical sales for the year, based in part on the assumption that its pharmacy and digital businesses will continue to grow, President and CFO Sharon McCollam said during an earnings call. Dive Insight: Albertsons has been directing resources toward its pharmacy and e-commerce operations, and those investments are paying off for the company, executives said during the earnings call. The grocer has seen "sequential improvement" in its core grocery operations and believes that continued strength in that area will help push identical sales up as the year moves ahead, McCollam said. The company now expects identical sales to rise between 2% and 2.75% during fiscal 2025, up from the range of 1.5% to 2.5% it previously forecast. Albertsons' pharmacy and health business grew 20% year over year during Q1, due in part to robust prescription sales and immunization growth, said CEO Susan Morris, who took over the top job in May. That, in turn, is helping to increase sales elsewhere in the store. People who make purchases at the pharmacy counter visit stores four times more often and buy significantly more groceries than other shoppers, Morris said, underscoring the long-term value for Albertsons of investing in that part of its business. Morris added that Albertsons has found that GLP-1 drugs intended to help people lose weight have turned into sales drivers beyond the pharmacy counter despite the fact that the grocer does not make much money on the drugs themselves. While shoppers who take those medications often decrease the size of their basket at the start, they typically start buying things like supplements and lean proteins, "categories that are actually quite profitable for us as a company," Morris said. During Q1, Albertsons saw 25% growth in digital sales, and e-commerce accounted for 9% of total grocery revenue, Morris said. In response to a question from an analyst, McCollam said Albertsons is "getting very close" to breaking even on its e-commerce operations - a goal that Walmart has already achieved and Kroger is also pursuing. McCollam emphasized that Albertsons does not take its Albertsons Media Collective digital media operation into account when evaluating the profitability of its e-commerce business, which she said differentiates it from competitors. "From a financial point of view, of course, [e-commerce] creates data for the media collective, and it is a major provider of information for the media collective. But from a P&L point of view, it's pure. What is driving that is volume, first and foremost," McCollam said. Morris also said during the call that Albertsons sees a strong growth path for its own brand business, noting that while private label penetration was nearly 26% during Q1, the company believes that figure should be at least 30%. Copyright 2025 Industry Dive. All rights reserved.
Yahoo
15-07-2025
- Business
- Yahoo
Albertsons posts a strong Q1 as pharmacy and digital operations steam ahead
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Albertsons generated $24.9 billion in net sales and other revenue during the first quarter of fiscal 2025, up 2.5% compared with the same period last year, the supermarket chain reported Tuesday. Identical sales moved ahead at a 2.8% clip, twice the rate it posted for the metric during Q1 of 2024, driven by double-digit growth in pharmacy and e-commerce sales. Albertsons raised its expectations for identical sales for the year, based in part on the assumption that its pharmacy and digital businesses will continue to grow, President and CFO Sharon McCollam said during an earnings call. Albertsons has been directing resources toward its pharmacy and e-commerce operations, and those investments are paying off for the company, executives said during the earnings call. The grocer has seen 'sequential improvement' in its core grocery operations and believes that continued strength in that area will help push identical sales up as the year moves ahead, McCollam said. The company now expects identical sales to rise between 2% and 2.75% during fiscal 2025, up from the range of 1.5% to 2.5% it previously forecast. Albertsons' pharmacy and health business grew 20% year over year during Q1, due in part to robust prescription sales and immunization growth, said CEO Susan Morris, who took over the top job in May. That, in turn, is helping to increase sales elsewhere in the store. People who make purchases at the pharmacy counter visit stores four times more often and buy significantly more groceries than other shoppers, Morris said, underscoring the long-term value for Albertsons of investing in that part of its business. Morris added that Albertsons has found that GLP-1 drugs intended to help people lose weight have turned into sales drivers beyond the pharmacy counter despite the fact that the grocer does not make much money on the drugs themselves. While shoppers who take those medications often decrease the size of their basket at the start, they typically start buying things like supplements and lean proteins, 'categories that are actually quite profitable for us as a company,' Morris said. During Q1, Albertsons saw 25% growth in digital sales, and e-commerce accounted for 9% of total grocery revenue, Morris said. In response to a question from an analyst, McCollam said Albertsons is 'getting very close' to breaking even on its e-commerce operations — a goal that Walmart has already achieved and Kroger is also pursuing. McCollam emphasized that Albertsons does not take its Albertsons Media Collective digital media operation into account when evaluating the profitability of its e-commerce business, which she said differentiates it from competitors. 'From a financial point of view, of course, [e-commerce] creates data for the media collective, and it is a major provider of information for the media collective. But from a P&L point of view, it's pure. What is driving that is volume, first and foremost,' McCollam said. Morris also said during the call that Albertsons sees a strong growth path for its own brand business, noting that while private label penetration was nearly 26% during Q1, the company believes that figure should be at least 30%. Recommended Reading Albertsons needs to move fast as it looks to regroup, experts say Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Albertsons beefs up its private label offerings
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Albertsons on Wednesday debuted a private label line of ready-to-cook marinated meats featuring 'adventurous flavors and globally inspired ingredients' that take about 20 minutes to prepare. The chain is bringing items sporting the new house brand, Chef's Counter, to the self-service meat department before expanding the line to the deli, frozen and center store sections next year. Albertsons is positioning the new brand to attract shoppers interested in preparing restaurant-style meals on a budget. Albertsons is bolstering its own brands portfolio with a new assortment of unique foods as the grocer looks to set itself apart from competitors and connect with price-conscious consumers who want to cook at home. The grocer, which inaugurated Susan Morris as CEO at the beginning of the month, said in a press release about its newest house brand that it wanted to offer 'distinctly memorable and sensorily evocative experiences and trend-forward flavors that are often challenging to replicate.' Chef's Counter selections range in price from $4.99 to $12.69. Options include lemon peppercorn chicken, boneless pork loin chops featuring mesquite or garlic herb flavors, and chimichurri beef sirloin steaks. Shoppers can also opt for carne asada beef flap steak that Albertsons said was designed to 'evoke a distinct restaurant experience.' Albertsons has also added a collection of shoppable recipes featuring Chef's Counter-branded items to its online platforms. In addition, the grocer has enlisted celebrity chef Antonia Lofaso to help promote the brand through content on social media. Albertsons' addition of Chef's Counter follows the company's introduction in September of Overjoyed, which spans multiple grocery categories including snack mixes, candy, cookies and dessert supplies. The grocer also brought out Bee Lightly, a line of wines that come in flat bottles made from 100% recycled plastic, last fall. Retailers have been expanding their selections of house brands as they angle to build ties with shoppers while holding down costs. Private label grocery sales rose by almost 4% last year, to a record $271 billion, according to Circana data cited by the Private Label Manufacturers Association. Recommended Reading Albertsons unveils limited-time private label items Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
15-05-2025
- Business
- Miami Herald
Albertsons beefs up its private label offerings
Dive Brief: Albertsons on Wednesday debuted a private label line of ready-to-cook marinated meats featuring "adventurous flavors and globally inspired ingredients" that take about 20 minutes to chain is bringing items sporting the new house brand, Chef's Counter, to the self-service meat department before expanding the line to the deli, frozen and center store sections next is positioning the new brand to attract shoppers interested in preparing restaurant-style meals on a budget. Dive Insight: Albertsons is bolstering its own brands portfolio with a new assortment of unique foods as the grocer looks to set itself apart from competitors and connect with price-conscious consumers who want to cook at home. The grocer, which inaugurated Susan Morris as CEO at the beginning of the month, said in a press release about its newest house brand that it wanted to offer "distinctly memorable and sensorily evocative experiences and trend-forward flavors that are often challenging to replicate." Chef's Counter selections range in price from $4.99 to $12.69. Options include lemon peppercorn chicken, boneless pork loin chops featuring mesquite or garlic herb flavors, and chimichurri beef sirloin steaks. Shoppers can also opt for carne asada beef flap steak that Albertsons said was designed to "evoke a distinct restaurant experience." Albertsons has also added a collection of shoppable recipes featuring Chef's Counter-branded items to its online platforms. In addition, the grocer has enlisted celebrity chef Antonia Lofaso to help promote the brand through content on social media. Albertsons' addition of Chef's Counter follows the company's introduction in September of Overjoyed, which spans multiple grocery categories including snack mixes, candy, cookies and dessert supplies. The grocer also brought out Bee Lightly, a line of wines that come in flat bottles made from 100% recycled plastic, last fall. Retailers have been expanding their selections of house brands as they angle to build ties with shoppers while holding down costs. Private label grocery sales rose by almost 4% last year, to a record $271 billion, according to Circana data cited by the Private Label Manufacturers Association. Copyright 2025 Industry Dive. All rights reserved.
Axios
15-05-2025
- Business
- Axios
The most popular grocery stores in Philly
Walmart again reigns supreme among supermarkets in the Philadelphia metro. Why it matters: Shoppers are on the hunt for the best deals amid sky-high food costs that are poised to keep climbing. By the numbers: Walmart and its supercenters ate up 16.4% of the region's market share in 2024, per new data from Chain Store Guide. Albertsons' Acme stores, despite their troubles in recent years, were a close second with 15% of market share. That was followed by Giant and its Martin's stores (12.8%), Costco (5.9%) and Wegmans (5.7%). Flashback: Walmart's big-box stores maintained the top supermarket spot for at least a third straight year.
