Grocer accuses Kroger of breaching obligations

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.

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 (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.

Albertsons reported a 0.8% sales dip in Q3 and paused financial guidance amid a business review. CEO Susan Morris cited inflation and high fuel costs pressuring lower-income customers. The company plans to expand private-label offerings and refine pricing strategies. Digital engagement grew, with eCommerce and pharmacy customers driving loyalty. A refreshed strategy and financial roadmap are expected by Q4.

Albertsons seeks $8B-$9.3B from Kroger after their failed merger, alleging inadequate regulatory efforts. Kroger disputes claims, citing known antitrust challenges. Trial set for Oct. 19. Both firms face operational difficulties. Kroger plans to cut 3,000 corporate jobs. The proposed $20B merger would have created the largest U.S. supermarket chain.