Earlier this month Albertsons said it plans to undergo a streamlining process that will include closing some stores. Last month a federal judge blocked the company’s proposed $24.6 billion merger with Kroger over antitrust concerns. Following the judge’s decision, Albertsons sued Kroger for breach of contract. Kroger denied the allegation and the suit remains in litigation.
In addition to announcing that some stores will close, Albertsons said it plans to cut $1.5 billion in costs in the next three years. CEO Vivek Sankaran said the cost cutting will be the result of increased productivity, new technology, automation, leveraging its consolidated scale, and rebalancing its onshore and offshore activities.
Albertsons President and CFO Sharon McCollam told analysts in an earnings call earlier this month that the company completed 84 store remodels and opened nine locations in 2024. And according to Sankaran, more store rollouts and closings are to come.
Albertsons operates nearly 2,300 stores across 34 states and Washington, D.C., including chains such as Albertsons, Acme, Safeway, Vons, Jewel-Osco, Shaw’s, Tom Thumb, and several others. Albertsons is the second largest pure-play grocer in the U.S. behind Kroger.
