Weakening consumer willingness of residents squeezes performance. US supermarket chain Albertsons lowers full-year profit forecast and reorganizes business
Due to weak market demand and cautious consumer spending, Albertsons Companies, a well-known American supermarket chain operator, recently released its financial report, announcing a reduction in its full-year performance guidance for fiscal year 2026, and simultaneously launching a business restructuring plan called "ACI Edge" to cope with the downward pressure on its core retail business. Financial report data shows that in the first quarter of fiscal year 2026, which ended on June 20, Albertsons achieved net sales and other business income of US$24.94 billion, a slight increase of 0.2% year-on-year, mainly driven by the growth of fuel sales; however, same-store sales (Identical Sales), which measures core retail business, fell 0.8% year-on-year. Net profit attributable to the parent company in the quarter fell to US$84.7 million, equivalent to US$0.17 per share, a sharp decline from US$236.4 million (US$0.41 per share) in the same period last year. In addition, due to the increase in online delivery costs and fuel costs, the company's gross profit margin narrowed to 26.6% from 27.1% in the same period last year. In view of the continued pressure on the consumer side, Albertsons has fully lowered its performance expectations for fiscal year 2026. The company currently expects that same-store sales for the full fiscal year will decrease by 0.5% to 1.5% year-on-year, compared with the previous forecast of flat to growth of 1.0%; adjusted earnings per share guidance will be lowered from the original US$2.22 to US$2.32. Adjusted to US$1.75 to US$1.85; adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance was also lowered from the range of US$3.85 billion to US$3.925 billion to US$3.55 billion to US$3.625 billion. Albertsons CEO Susan Morris said that the company's digital business and pharmaceutical business continued to maintain strong growth in the first quarter, but the core supermarket business faced severe challenges from overall industry sales weakness and cautious consumer spending. Morris emphasized that the company decided to accelerate strategic investments in customer value proposition and shopping experience to drive long-term shareholder value by consolidating its competitive position in the market. In order to optimize operational efficiency and speed up decision-making response, Albertsons simultaneously announced the implementation of an architectural adjustment called "ACI Edge". According to the reorganization plan, the company will integrate its original 11 business divisions into four regions, and centralize and hand over the core store merchandise procurement and merchandise management coordination rights to the group level for unified operation, striving to maximize the scale effect of the national supply chain while improving the execution of the regional market. According to Albertsons, the company’s Chief Financial Officer Sharon McCollam has decided to retire later this year. McCullan will continue to perform his duties until a successor is determined and will serve as an advisor to the company during the subsequent transition period until the end of February 2027.