Albertsons Says Walmart, Amazon and Aldi Are Winning Price-Sensitive Shoppers

Albertsons Companies Inc. (NYSE: ACI ) stock fell in premarket trading Friday after the grocery retailer reported mixed first-quarter fiscal 2026 results, cut its full-year outlook and announced a broad restructuring plan. Adjusted earnings were 42 cents per share, below the 54-cent estimate. 822 billion estimate.

GAAP diluted earnings fell to 17 cents from 41 cents a year earlier. 111 billion. Albertsons said lower-income shoppers remain under pressure and are increasingly shifting their spending to lower-cost competitors. CEO Susan Morris told analysts the company’s biggest customer losses are to Walmart Inc.

com Inc. (NASDAQ: AMZN ) and Aldi, particularly among price-sensitive consumers. In response, Albertsons plans targeted price investments, personalized loyalty offers and expanded private-label promotions to retain budget-conscious shoppers. 8% as core grocery faced softer unit trends and a more cautious consumer.

Digital sales rose 13%, while pharmacy continued to grow despite Inflation Reduction Act headwinds. ” Morris also said, “E-commerce was profitable in the first quarter. ” Albertsons is investing in AI-powered tools for digital shopping, merchandising and labor optimization, supported by partnerships with Google, OpenAI and Microsoft. 1%.

Excluding fuel and LIFO expense, gross margin fell 23 basis points as higher digital delivery, handling and fuel costs outweighed improved pharmacy margins. 1 million. 163 billion in total debt. ACI Edge Restructuring Albertsons introduced ACI Edge, consolidating 11 divisions into four regions and centralizing center-store merchandising.

Management expects about $200 million in incremental annual run-rate benefits, with most savings realized in fiscal 2027. Transition costs are expected to total about $50 million across fiscal 2026 and fiscal 2027. 27 estimate. 625 billion.

5%, including a 150-basis-point headwind from the Inflation Reduction Act’s Medicare Drug Price Negotiation Program. 9 billion to $2 billion. Telsey Advisory Group downgraded Albertsons to Market Perform and lowered its price forecast to $13 from $22. BMO Capital also downgraded the stock to Market Perform, cutting its price forecast to $12 from $23.

Wells Fargo downgraded Albertsons to Equal Weight and reduced its price forecast to $11 from $18. 27 in the premarket session on Friday, according to Pro data. 64% in the previous session. Photo by JHVEPhoto via Shutterstock Read Also: Kroger Offers the Cheapest Store-Brand Grocery Basket Among Four Major Chains, Study Finds