Albertsons demands Kroger pay $9B in failed merger

Albertsons Companies Inc. (ACI) withdrew its financial outlook after Q2 sales fell 0.1% to $18.9B and profit declined. Executive Chair Margaret Whitman cited disappointing results and called for faster cost cuts and price reductions. ACI stock is down 23% this year, on track for its worst annual performance since 2022.

Kroger CEO Greg Foran plans to present a new strategy to investors, focusing on cost-cutting and affordability. The company faces flat sales due to inflation and a lettuce recall. Kroger announced a $1.65 billion deal to acquire Giant Eagle. Foran has cut 3,000 corporate jobs and expanded its budget-friendly Smart Move brand.

Albertsons (ACI) reported Q2 2026 earnings with identical sales down 0.8%, adjusted EBITDA at $784M, and adjusted EPS at $0.36. Management acknowledged underperformance and outlined plans to cut costs, improve pricing, and streamline operations to boost shareholder value and customer experience. They aim to accelerate cost savings and focus on core markets and assets.

Albertsons Cos is suing Kroger Co for over $9 billion, alleging breach of obligations in the failed $24.6 billion merger. The trial in Delaware Chancery Court will determine responsibility for the deal's collapse, blocked by a federal court in December 2024. Albertsons claims Kroger did not use 'best efforts' to secure regulatory approval.

Albertsons (ACI) reported Q2 sales dip, with CEO Susan Morris announcing a business review to focus on customer experience, financial performance, and cost cuts. Cost savings opportunities remain, with plans for more headcount reductions. Inflation is being managed, and pricing strategies are being refined market by market. The company is accelerating owned brands and centralizing buying to reduce costs. CapEx plans remain unchanged, focusing on high-return opportunities.

Albertsons reported a 0.8% drop in identical sales for Q2, with net sales at $18.9B. The company withdrew financial forecasts as it reviews strategy under new Executive Chairman Meg Whitman. Whitman, known for turnarounds at HP and eBay, suggested significant changes may be ahead. Albertsons faces challenges from food inflation and higher costs compared to rivals like Walmart and Kroger.