Albertsons: The Robin Report Retail Miss of the Week, 10. 17. 26

Albertsons seeks over $8 billion in damages from Kroger over the failed $24.6 billion merger, claiming Kroger did not use best efforts to secure approval. Albertsons alleges lost merger premium of $5.43 billion to $6.88 billion, plus additional costs. Kroger denies the claims, arguing it worked to secure approval and that Albertsons also failed its obligations. The trial begins Oct. 19.

Albertsons Companies (NYSE: ACI) appointed Harmit Singh to its Board of Directors. Singh, currently CFO of Levi Strauss & Co., brings extensive experience in finance and retail. The board now has 15 members. Singh's expertise is expected to support Albertsons' growth strategy.

Texas Attorney General Ken Paxton, as part of a multistate coalition, secured a $773 million settlement with Albertsons for its role in the opioid crisis. Texas is eligible to receive up to $57.8 million for opioid abatement. This is part of over $3.3 billion in settlements negotiated by Paxton to address the opioid epidemic.

Albertsons reported a 0.1% sales decline to $18.89B for the 12 weeks ended Sept. 12, 2026, driven by a 0.8% drop in identical sales. Pharmacy and digital sales grew, with digital up 11%. CEO Morris announced $2B in cuts over three years, up from $1.5B, and hinted at store closures. The company plans to focus resources on high-impact projects and exit underperforming areas.

Albertsons suspended its 2026 financial forecast after Q2 profits fell 69.4% to $51.5M, with revenues slightly down 0.1% to $18.9B. Digital sales grew 11%, but physical stores struggled. The company plans restructuring to cut costs and improve competitiveness, with new targets expected in Q4 2027.

Albertsons is suing Kroger for over $8 billion in damages following the collapse of their merger. Both companies blame each other for the failure to secure regulatory approval, with court documents revealing accusations of greed and incompetence. The case is set to be heard in Delaware on Oct. 19.