Albertsons to Close More Unprofitable Stores Amid Competitive Pressure
Grocery chain Albertsons is closing more unprofitable stores in response to increasing competition from national retailers like Walmart, Target, Costco, and Amazon. The company reported a mixed first-quarter performance with same-store sales down by 0.8%, despite digital sales rising 13%. CEO Susan Morris emphasized that store closures are considered only as a last resort for underperforming locations. To improve efficiency, Albertsons is restructuring its operations into four regions and centralizing merchandising functions to enhance decision-making and leverage scale better. The company closed around 30 stores in 2025 with more planned for 2026, though Morris clarified that the number of closures remains small relative to their total store count. The grocery industry is facing a shift as consumers diversify shopping habits across multiple formats including online delivery and specialty purchases. Albertsons aims to adapt by focusing on profitable operations while navigating an increasingly competitive landscape.
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Topics: Albertsons competition grocery retail same-store sales