Albertsons Launches Broad Review, Withdraws Fiscal 2026 Outlook

Albertsons has launched a broad business review after Meg Whitman became executive chair, withdrawing its fiscal 2026 outlook as comparable sales weakened and expenses increased.

The review will cover the grocery chain’s customer strategy, cost structure, operating model, store-banner portfolio, markets, assets, businesses and capital-allocation priorities. Albertsons expects to complete the work during its fiscal fourth quarter before presenting an updated financial framework with its turnaround plan.

For the 12 weeks ended Sept. 12, net sales and other revenue fell 0.1% from a year earlier to $18.8947 billion. Identical sales declined 0.8%, gross margin narrowed to 26.8% from 27.0% and selling and administrative expenses rose to 25.6% of revenue from 25.4%.

Net income was $51.5 million, or $0.11 per share. Adjusted net income was $179 million, or $0.36 per share, while adjusted EBITDA was $784 million. Digital sales increased 11%.

“Our results do not reflect the potential of the Company,” CEO Susan Morris said.

Whitman became executive chair effective Sept. 8 and is advising Morris and senior management on operations, strategy, execution and profitable growth. Her appointment expanded Albertsons’ board to 11 directors, with Kim Fennebresque becoming lead independent director.

“We are launching a comprehensive business review,” Morris said.

Albertsons withdrew its fiscal 2026 outlook as it launched the comprehensive review.

The company said it will provide a refreshed financial framework at its fiscal fourth-quarter earnings call and plans to hold an investor day in spring 2027. It has not identified specific banners or businesses for sale or closure.

The review follows ACI Edge, an initiative announced July 23 that consolidated 11 divisions into four regions and centralized center-store merchandising under one enterprise team.

As of Sept. 12, Albertsons operated 2,240 stores, 1,709 in-store pharmacies, 408 fuel centers, 22 distribution centers and 19 manufacturing facilities across 35 states and the District of Columbia.

Whitman’s compensation includes a $100,000 annual base salary and restricted stock units with a grant-date value of $8.9 million, vesting over one year subject to continued employment. The updated financial framework is due with the company’s fiscal fourth-quarter results.