Albertsons posted a rough second quarter — revenues slid 0.1% to $18.89 billion, identical-store sales fell 0.8%, and adjusted net income dropped 28%. The Boise-based grocer has launched a comprehensive business review, pulled its full-year financial guidance, and said layoffs and store closures are on the table as it accelerates its turnaround effort. CEO Susan Morris called the results below the company's potential and said the cost structure is no longer affordable.
The review follows ACI Edge, an earlier restructuring that consolidated Albertsons' 11 divisions into four regions and centralized center-store merchandising. The company is simultaneously suing Kroger for more than $8 billion, alleging its rival failed to produce a viable antitrust divestiture plan — a trial that starts October 19. Grocery and digital channels showed some resilience, with digital sales up 11%, but shrink and delivery costs pressured margins.
For produce suppliers and category managers with Albertsons accounts, this level of structural uncertainty warrants close attention. A company in active turnaround mode with withdrawn guidance and potential store closures is likely to tighten supplier terms, reduce SKU counts, and reset promotional commitments.