Albertsons warns of softer grocery demand as consumers pull back - Fox Business

What the report says

Fox Business reported that Albertsons lowered its fiscal 2026 sales and profit outlook after weaker grocery demand and more cautious consumer spending weighed on first-quarter results. The company now expects identical sales to fall 0.5% to 1.5% for the year, a reversal from its earlier forecast of flat sales to 1% growth. It also reduced adjusted earnings guidance to $1.75 to $1.85 per share, from $2.22 to $2.32, and trimmed its adjusted EBITDA forecast to $3.55 billion to $3.625 billion.

For the quarter ended June 20, Albertsons said identical sales declined 0.8%, while net sales and other revenue rose slightly to $24.94 billion, supported in part by fuel sales. Digital sales increased 13%, and the company said its pharmacy business also grew, but those gains did not fully offset pressure in core grocery. Net income fell to $84.7 million, or 17 cents per share, compared with $236.4 million, or 41 cents per share, a year earlier. Adjusted earnings declined to 42 cents per share.

Albertsons also announced an operating realignment called ACI Edge, reducing its 11 divisions into four regions and centralizing center-store merchandising under one enterprise team. The company said the changes are intended to speed decisions, improve local execution and better coordinate category management, supplier relationships and merchandising strategy.

The results matter because they show continued strain in food retail as shoppers respond to high household costs and seek value. Fox Business also reported that CFO Sharon McCollam plans to retire later this year, remaining until a successor is named and then advising through Feb. 27, 2027. Albertsons operated 2,240 stores across 35 states and Washington, D.C., as of June 20.