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Albertsons
Albertsons
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Albertsons Companies, Inc.[1][2] is an American grocery company founded and headquartered in Boise, Idaho.

Key Information

With 2,253 stores as of the third quarter of fiscal year 2020 and 270,000 employees as of fiscal year 2019,[3][8][6] the company is the second-largest supermarket chain in North America after Kroger.[9][10] Albertsons ranked 53rd in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[11] Prior to its January 2015 merger with Safeway Inc. for $9.2 billion,[12] it had 1,075 supermarkets located in 29 U.S. states under 12 different regional banners. Its predecessor company, Albertsons, Inc., was reorganized as Albertsons LLC and sold to AB Acquisition LLC, a Cerberus Capital Management–led consortium. After buying back the majority of its former stores it sold to SuperValu in 2006, AB Acquisition announced it would change its name to Albertsons Companies Inc. in 2015.[13] The company's corporate name was Albertson's Inc. until 2002, when the apostrophe was removed.[14]

On October 14, 2022, Albertsons announced it would be acquired by rival Kroger for $25 billion.[15] On November 30, 2023, Kroger CEO Rodney McMullen announced that the companies had satisfied the informational requirements of the Federal Trade Commission, and the deal was expected to close in early 2024.[16] However, in January 2024, Washington state sued to block the proposed $25 billion merger between Kroger and Albertsons, warning that if approved it could raise prices and harm consumers.[17] In February 2024, Colorado Attorney General Phil Weiser also filed a lawsuit, saying consumers told him they feared it "would lead to stores closing, higher prices, fewer jobs, worse customer service, and less resilient supply chains."[18] Kroger and Albertsons terminated their merger attempt on December 11, 2024, after it was blocked by a federal and a state judge.[19]

History

[edit]

Beginnings

[edit]

Albertsons was founded in 1939 by Joe Albertson (1906–1993) on July 21 in Boise, Idaho.[20] An ad in Boise's Idaho Statesman newspaper touted Albertson's first store as "Idaho's largest and finest food store."[21] The store was filled with perks that, at the time, were brand new: free parking, a money-back guarantee, and even an ice cream shop.[22][23] The original store was built onto several times, but it was demolished in 1979, and a replacement store was built on the same property.[24] A brick monument stands on the northwest corner of 16th and State Streets in downtown Boise, commemorating the original store.

The cheese department of an Albertsons in Seattle (1955)

The grocery store was an enormous success, and Albertson reinvested his profits back into the business. New stores were opened in neighboring towns to the west: Nampa, Caldwell, and Emmett, before America's entry into World War II in late 1941. The company grew steadily in the years following World War II. When Albertson was considering putting a new store in a town, he would drive around the town and look for neighborhoods with children's clothing hanging on clotheslines, and station wagons in driveways; he knew that those kinds of neighborhoods were where he wanted to build his stores.

Albertson's, Inc. became a public company in 1959, and its growth continued, opening its hundredth store in Seattle in 1963.[25] in 1964, Albertsons expanded to southern California by acquiring All American Markets, a small chain based in Orange County.

In 1967, Albertsons expanded into Colorado, acquiring eight stores from Furr's Supermarkets. By the end of the 1960s, Albertsons operated over 200 stores within a nine-state region and the stores averaged about 20,000 square feet in size.[25]

Partnership with Skaggs and 1970s expansion

[edit]

In 1969, Albertsons partnered with Skaggs Drug Centers, owned by the Skaggs Companies, Inc., to create the first combination food/drug stores,[20] first in Texas. The partnership was a tremendous success for several years. The partnership ended due to the fact that it was getting more difficult to control. Neither partner could buy the other out, and the partnership was dissolved amicably in 1977. Skaggs kept stores in Texas, Oklahoma, and Arkansas, and Albertsons kept stores in Florida, Alabama, and Louisiana, as well as some Texas stores (based in San Antonio).[26]

Albertsons continued to expand its base in the West during this time. In 1973, Albertsons opened its first distribution center in Brea, California. In 1974, Albertsons bought the four-store Monte Mart chain in northern California.[27] Albertsons bought Fazio's Shopping Bag in 1978 from Fisher Foods, adding 46 stores in Southern California.

Expansion in the 1980s

[edit]

In 1981, Albertsons entered Nebraska and South Dakota.

In 1982, Albertsons reorganized its management into four regions: California, Northwest, Intermountain, and South. Albertsons continued to add stores in the 1980s, building or acquiring about 283 stores during the decade. Albertsons continued to expand in Texas beyond the Skaggs base in north Texas and San Antonio, re-entering the Dallas–Fort Worth market in 1984, and adding three Skaggs-Alpha Beta stores in Austin within months after entering that market in early 1989 with the acquisition of six Tom Thumb stores.

Albertsons built its first fully mechanized distribution center in Portland, Oregon, in 1988.

In 1989, Albertsons opened its 500th store, in Temecula, California.

Expansion in the 1990s

[edit]
An Albertsons that converted from Buttrey Food and Drug in Missoula, Montana

Albertsons began to expand heavily in the 1990s.[20] In 1992, Albertsons bought the stores American Stores (formerly Skaggs Drugs Cos.) had in Texas, Oklahoma, Arkansas, and Florida. Many of the stores had been opened as Skaggs Albertsons originally (later turning into "Skaggs Alpha Beta" under American Stores ownership) but by 1991 had been rebranded as Jewel-Osco. These included a few stores that American Stores opened in the late 1980s under that name in Florida. Additionally, a non-food distribution center in Ponca City, Oklahoma, was purchased from ASC.

In 1994, Albertsons would acquire four stores from San Diego County chain Big Bear Markets.

The Skaggs acquisition was a success, and the new stores were integrated into Albertsons's Southern division. The ease of that acquisition and Albertsons's high-flying stock price led Albertsons to attempt expansion on a grand scale. In a series of acquisitions in the late 1990s, Albertsons purchased Seessel's[28] and 14 other stores from Bruno's,[29] Buttrey Food & Drug[30] (divesting seven Buttrey stores and six Albertsons stores to Smith's and another two Buttrey stores to SuperValu), the Springfield, Missouri Smitty's chain, and three Super One Foods stores from Miner's Inc. in the Des Moines market, all while building new stores across all divisions. These acquisitions brought Albertsons into five new states: Georgia, Iowa, Missouri, North Dakota, and Tennessee.[26]

Albertsons Express gas stations

[edit]

Albertsons launched a new branch of their brand in 1997, Albertsons Express, which included a fuel center and a convenience store.[31] The first of the Albertsons Express opened that year in Eagle, Idaho.[32] This branch was constructed in front of the parking lot of Albertson's full-size grocery store at the city's Parkcenter Boulevard.[31] This concept was not limited to Idaho; it expanded to locations across America located on Albertsons’ existing/new stores properties. A few of the locations with Express Gas Stations include Gresham,[33] Hillsboro,[34] and Portland[35] in Oregon; Houston[36] in Texas; and Casper[37] and Cheyenne[38] in Wyoming.

American Stores acquisition

[edit]

In 1998, Albertsons made its biggest acquisition yet: American Stores Company, which included the chains ACME in Pennsylvania, New Jersey, Maryland, and Delaware; Lucky in California and Nevada; Jewel and Jewel-Osco in Illinois, Indiana, and Iowa, and two drug store chains: Osco Drug, with a presence in New England, the Midwest, Montana and Arizona; and Sav-on Drugs, with a presence in Southern California, Nevada, Western Arizona, and New Mexico. The acquisition briefly made Albertsons the largest American food and drug operator, with over 2,500 stores (including stand-alone drug stores) in 37 states, until Kroger's acquisition of Fred Meyer closed the following month. To make the acquisition, Albertsons was forced by anti-trust concerns to divest 146 stores in California, Nevada, and New Mexico, to Certified Grocers, Raley's, Ralphs, Stater Bros., and Vons. In California, Nevada, and New Mexico, there were already Albertsons stores, so in order to not have two banners in the same area, 508 Lucky stores were converted to the Albertsons banner in November 1999, and the Lucky brand name was retired.[39] The brand was reintroduced in the mid 2000s.[40]

In January 2001, Albertsons restructured its "districts" to a divisional structure mostly based around distribution centers, with a drug store division and 18 regional division offices.[41]

2001–2004 restructuring

[edit]

On July 18, 2001, Larry Johnston, the new chairman and CEO of Albertson's, announced it would close 165 "underperforming" stores spread across 25 states, cut jobs, and reduce its newly created operating divisions. The first change was that the Utah, Idaho, and Big Sky (Montana) division were merged back into Intermountain, while Oregon, Washington, and the Inland Empire (eastern Washington and Northern Idaho) division would be consolidated back into a single Northwestern division. Albertsons sold its freestanding Osco Drug stores in the northeastern states to Jean Coutu Group, a Canadian drug store company (those stores were re-branded as Brooks Pharmacy after the sale was completed in January 2002). In 2001,[42] the short-lived Des Moines stores would close as well[43] and Albertsons began to issue Albertsons Preferred Savings Cards for all of its stores.

The following year, three more divisions were closed entirely:

  • San Antonio: Having been in San Antonio since the Skaggs Albertsons days, at the time Albertsons was ranked as the area's number two grocer by market share, compared to H-E-B's top position in the market. At the time of the withdrawal, the 44-store H-E-B chain held a commanding 61 percent market share, while Albertsons held a 15 percent market share. Albertsons had held the third position at the time Kroger exited the market in mid-1993 when it closed its 15 area stores. Then, H-E-B's 37 area stores held a 43.2 percent market share, Kroger's 15 area stores a 13.7 percent share, and Albertsons's 10 stores a 13.1 percent share. The remaining stores in the San Antonio division, primarily in the Austin area, became part of the Dallas division.[44] The last store in South Texas to close, a store in Victoria, Texas, was closed in October.[45]
  • Mid-South: In 2002, Albertsons shuttered its Mid-South division by selling its Seessel's supermarket chain in Memphis to Schnucks and stores in Mississippi to Brookshire's. The Albertsons-branded stores in the Nashville area, most of which had previously been Bruno's stores under the Foodmax banner, were sold to either Publix (marking its entry into the market) or Kroger.[46]
  • Houston: After entering the market in the early 1990s, the troubled Houston division would be gone too, with Albertsons closing its 43 area stores, with most reopening as Kroger or Randalls (acquired with Safeway in 2015 and subsequent return to Houston), with 2 of them becoming H-E-B stores. The Louisiana stores from that division joined the Florida division (though they would move to the Dallas division soon after), while the stores in the Bryan–College Station area became part of the Dallas division.[44] The Greater Houston distribution center near Katy, built in 1996[26] was sold to 99 Cents Only Stores in 2003.[47]

Additionally, the distribution center in Tulsa, Oklahoma, (home of the Great Plains division) was sold to Fleming Companies, though no stores were closed.[48] The Great Plains division stretched all the way into Omaha, Nebraska.[49] The sale of the distribution center included a distribution deal for Fleming to continue to supply Oklahoma and Omaha.[50]

After stabilizing the company's finances and consolidating divisions in 2004, Albertsons acquired Shaw's Supermarkets and Star Market from Sainsbury's for $2.5 billion.[51] Albertsons also purchased Bristol Farms for $135 million.[52] During the same time, Albertsons exited the markets of Omaha,[53] where it closed or sold 21 stores, and New Orleans, Louisiana, where it closed seven, selling four to A&P, which converted them to Sav-A-Center.[54]

A typical Albertsons in Boise, Idaho, in June 2007 (Store #162)

Sale to Cerberus and SuperValu

[edit]

Despite this, the acquisition spree had caused significant problems for Albertsons, Inc. Many of the acquired chains had systems that did not mesh well with Albertsons. Financing those acquisitions required Albertsons Inc. to take on significant debt. Added to those problems were significant changes in consumer buying patterns, including new competition from large discounters such as Walmart and Costco that impacted sales.

After several assessments of the company and months of rumors, it was announced on January 23, 2006, Albertsons, Inc. was to be sold to a consortium of companies. SuperValu would take the bulk of the company including the brand names and what was considered to be the stronger divisions, including 3 Albertsons divisions: the Southern California division (Southern California; Southern Nevada; along with stores in Hanford and Tulare, in Northern California), the Northwest division (Oregon except Ontario, Washington State, and the Idaho Panhandle), and the Intermountain division (Southern Idaho; Elko, Nevada; Utah; Jackson and Rock Springs, Wyoming; Montana; Ontario, Oregon; and North Dakota) as well as the ACME, Bristol Farms, Jewel-Osco, and Shaw's Supermarkets and Star Market brands.[55] This acquisition would also lead to SuperValu gaining access to over 100 Albertsons Express fuel centers.[36]

CVS would acquire 702 stand-alone Osco and Sav-on Drug stores and converted them to CVS Pharmacy stores. They also closed about 100 of the 702.

What was left of Albertsons Inc. became Albertsons, LLC,[56] purchased by a Cerberus-led group of investors, and CVS Pharmacy. The acquisition was completed on June 2, 2006, with the Cerberus-led group (who also included Kimco Realty Corporation, Schottenstein Stores Corp., Lubert-Adler Partners, and Klaff Realty). They held Albertsons LLC as "AB Acquisition LLC". Albertsons LLC included 661 stores and the distribution centers and offices from five of Albertsons divisions. These five divisions were thought to be Albertsons' five weakest divisions, and conventional wisdom in the industry was that the stores would eventually be closed or sold to other operators.

As of June 2, 2006, the company's retail stores were divided as follows:

  • SuperValu had acquired 1,124 stores in the deal, including:
    • ACME (134 locations)
    • ACME Express, Jewel Express, and Albertsons Express (107 fuel centers)
    • Albertsons (564 locations in Southern California, Idaho, Montana, Nevada, North Dakota, Oregon, Utah, Washington and Wyoming) – New Albertsons Inc. (later sold to Albertsons LLC)[57]
    • Bristol Farms (11 locations)
    • Jewel and Jewel-Osco (198 locations)
    • Lazy Acres (1 location)
    • Max Foods (4 locations) (3 converted into Lucky, 1 became Albertsons in July 2006)
    • Osco Pharmacy and Sav-on Pharmacy (906 in-store pharmacies)
    • Save-A-Lot (2 stores franchised by Shaw's)
    • Shaw's (169 locations)
    • Star Market (20 locations)
    • Distribution centers (11 centers)
  • CVS acquired all (approximately 702) of the stand-alone Osco Drug and Sav-on Drugs rebranding them all as CVS Pharmacy, though they closed approximately 100 of the acquired stores. Many CVS locations were close to Sav-on stores. CVS also acquired one distribution center.
  • The Cerberus-led Albertsons LLC retained:
    • Albertsons (655 locations in Arizona, Northern California, Colorado, Florida, Louisiana, New Mexico, Oklahoma, Texas, and Wyoming – Albertsons LLC)
    • County Line Liquors (1 location)
    • Grocery Warehouse (1 location)
    • Jewel-Osco (2 locations)
    • Max Foods (2 locations)
    • Super Saver Foods (23 locations, 21 closed in late 2006)

Following the sale, Albertson's, Inc., was removed from the NYSE. Albertsons LLC was technically the successor company to Albertsons according to SEC filings[58] but it was New Albertsons Inc. that assumed most of the debt, got most of the property, and transitioned Albertsons stock into SuperValu stock.

The five Albertsons Inc. divisions that remained as Albertsons LLC were the Dallas/Fort Worth division (Texas excluding El Paso, Oklahoma, Louisiana, and Arkansas), the Rocky Mountain division (Colorado, Wyoming excluding Rock Springs and Jackson stores, Nebraska, and South Dakota), the Southwest division (Arizona, New Mexico and El Paso, Texas), the Florida division (Florida), and the Northern California division (northern California excluding Hanford and Tulare stores, and northern Nevada). Albertsons LLC then concentrated on rebuilding market share and its store base in its stronger areas and divesting stores and other property in its weaker areas.

On June 6, 2006, only one week after Albertsons LLC was created, the company announced its intent to close 100 Albertsons stores by August 2006, including all but two Super Saver stores.[59] Those closures were spread across all five divisions. Soon after, the company announced that it would be shutting down its online delivery service on July 21, 2006.[60] To distinguish the two companies, Albertsons LLC created a second website, AlbertsonsMarket.com.

A leaner company

[edit]

In November 2006, it was announced that the Northern California division, consisting of stores located in northern California and northern Nevada, would be sold to Save Mart, with the deal closing in late February 2007.[61] The company gradually converted all the stores to its Save Mart banner over summer 2007, except for stores in the San Francisco Bay area, which were rebranded as Lucky.[62][63] The deal included two Northern California distribution centers. Most of the Albertsons locations had originally been branded as Lucky before Albertson's 1998 purchase of American Stores.[62]

Most of the changes in the next six years would downscale the remaining divisions. In the Dallas–Fort Worth division, in 2007, the distribution center was sold and outsourced to Associated Wholesale Grocers,[64] and Albertsons would exit both Oklahoma[65] and Austin.[66] The Oklahoma stores were sold to Associated Wholesale Grocers members while the Austin stores were sold to H-E-B. With the closures, only four stores south of the Dallas–Fort Worth area existed in Texas, all of which were closed or sold by December 2011. Additionally, many of the Dallas–Fort Worth metroplex stores closed during this time,[67] even into 2011.[68]

A typical Albertsons-Savon store in Dallas, Texas, in October 2005 (Store #4297). This store was later sold as part of FTC-ordered divestment, and later became Minyard Sun Fresh Market, but has since closed.

The Florida division, which was always discontiguous with Albertsons' main market, suffered a blow in June 2008 when Albertsons LLC entered into an agreement with Lakeland, Florida-based Publix stores to sell 49 Florida Albertsons locations to the chain. This included 15 stores in Northern and Northwest Florida, 30 locations in Central Florida, and four locations in South Florida. The sale was completed in September.[69] In April 2012, the company closed most of its stores in Florida.[70][71] The Plant City distribution center was sold to Gordon Food Service[72] though the Florida Division continued to be located there. By April 2012, only four stores remained in the entire state of Florida.[73]

The Rocky Mountain division slowly shed stores.[74][75][76] By April 2007, there were only 32 stores left in the state of Colorado.[77] In December 2007, SuperValu acquired the eight remaining Wyoming locations from Albertson's LLC not already owned by the company. These stores continued to operate under the Albertsons banner.[78] 2008 also brought the sale of Albertsons' lone South Dakota and Nebraska stores to Nash Finch.[79] In August 2009, the distribution center and division office closed and the 26 remaining stores moved to the Southwest division.[80]

Only the Southwest division was spared the major cuts suffered by the other divisions. On June 12, 2007, Albertsons LLC agreed to acquire all Raley's locations in New Mexico. The acquisition includes one closed and eight operating stores in Albuquerque and one store in Taos, thus doubling Albertsons store base in the Albuquerque metro.[81]

In June 2007, Albertson's LLC decided to discontinue its Preferred Savings Card Program, choosing instead to offer discounted items to all of its customers.[82] In September 2007, all Albertsons stores in the Dallas/Fort Worth, Texas, and Florida markets began collecting their Albertsons Preferred Savings Cards.[83]

An Albertsons Express that closed due to Hurricane Katrina, located in New Orleans, Louisiana

End of the first generation of Albertsons Express

[edit]

Beginning in 2008, Albertsons began exiting the fuel business, selling 72 of over one hundred Albertsons Express gas stations to Valero Energy, which converted most of them to Corner Store locations.[84] This would not be the end though, as many Express stores still remained including Cheyenne, WY.[36] It would not be until 2011–2013 that most of the Albertsons Express locations were divested under the Supervalu company. Even then, some locations including Hillsboro still displayed Albertsons Express banners.[34]

New Albertsons acquisition

[edit]

While Albertsons LLC had restored its stores to profitability, SuperValu's New Albertsons Inc. had done poorly. While SuperValu did remodel many stores and open a few new stores, New Albertsons had shrunk. Of the 1100+ stores SuperValu acquired in 2006, fewer than 900 remained by 2013.[85] Under SuperValu, Bristol Farms had been sold off,[86] 36 Utah stores were sold to Associated Food Stores (leaving just three traditional Albertsons stores in the state),[87][88] the Wisconsin Jewel-Osco stores had been sold or closed,[89] as well as the Shaw's stores in Connecticut.[90] Additionally, like Albertsons LLC, most of the fuel stations had been shuttered or sold to other operators.[91]

On January 10, 2013, it was announced[92] that SuperValu was selling New Albertsons (Albertsons, ACME, Shaw's/Star Market, and Jewel-Osco, though they had previously sold off Bristol Farms in 2010) to Cerberus Capital Management. The deal was closed in March 2013.[13] On February 23, 2013, AB Acquisition announced it would split operations of the newly combined company into eight divisions: Northwestern, Intermountain, Southern California, Southern, Jewel-Osco, ACME, Shaw's, and Southwestern, and in March 2013, the deal was officially closed. On paper, Albertsons LLC controlled the Albertsons-branded stores and New Albertsons Inc. controlled ACME, Shaw's/Star Market, and Jewel-Osco, but it was operated as one company.

On June 11, 2013, Albertsons announced its plans to merge its duplicate websites, social media accounts and mobile apps onto one of each kind, ending the use of the Albertsons Market branding (though this was never used on store exteriors) and AlbertsonsMarket.com.[93] While its website consolidation appeared to take place as expected, its applications received bad reviews[94]—but the biggest consequence was the mistaken deletion of their previous Facebook page and loss of over 200,000 fans. While no details were given as to the mistake made, Albertsons simply admitted that while attempting to join their Albertsons page with over 200,000 Likes and their Albertsons Market page with over 80,000 Likes, something went wrong resulting in the loss of thousands of Likes and comments.

That same month, Albertsons did away with the Preferred Savings Card in the former SuperValu stores that Albertsons LLC had dispensed with in 2007.[95] The cards briefly continued in Southern California stores before being discontinued in July 2013.

United Supermarkets acquisition

[edit]

On September 9, 2013, the company acquired Lubbock-based supermarket United Supermarkets LLC.[96] On February 4, 2014, the FTC voted 4–0 to approve the deal. The acquisition deal cost Albertsons $385 million and required Albertsons to sell its single stores in the Amarillo, Texas, and Wichita Falls, Texas, markets.[97] The United Supermarkets family brands include Market Street, Amigos, and United Express.[98]

After the deal was finalized, the Albertsons Market brand was revived for Albertsons stores operated by United. The first to be branded as such opened in Alamogordo, New Mexico, in January 2015.

Safeway acquisition

[edit]

On February 19, 2014, Safeway began to explore selling itself, and by February 21, 2014, it was in advanced negotiations with Cerberus Capital Management.[99] On March 6, 2014, Cerberus (parent company of Albertsons) announced it would purchase Safeway for $9.4 billion in a deal expected to close in the 4th quarter of the year.[100]

On July 25, 2014, Safeway stockholders approved the merger with Albertsons.[6]

In December 2014, Albertsons announced that the Haggen Company, a Bellingham, Washington, based grocery chain, was buying 146 Safeway, Albertsons and Vons stores, as required by the antitrust review of the merger.[101]

On January 30, 2015, Albertsons officially acquired Safeway Inc. after being cleared by the FTC,[12] thus giving it control of the Safeway store banners, including Randalls, Tom Thumb, Carrs Safeway, Vons, and Pavilions, plus Safeway's 49% share of Casa Ley, a Mexican grocery chain.[102] Following the merger, Albertsons announced the new company would have 14 divisions led by three regional offices.[103]

East Region
North Region
  • Denver Division: North Region, existing Safeway Denver division with some Albertsons stores from Intermountain. Includes stores in most of Colorado (except for the Grand Junction stores which are part of Intermountain, and the Durango stores which are part of Southwest), the eastern two-thirds of Wyoming, all of Nebraska and South Dakota, and Farmington, New Mexico.
  • Intermountain Division: North Region, most of the existing Albertsons division with some Safeway stores from the Seattle Division. Includes all stores in North Dakota, most of Idaho except for the northern panhandle (which is part of the Seattle Division), most of Utah except for the far southern portion (which is part of the Southwest Division), northeastern Nevada, the western third of Wyoming, and stores in the Grand Junction, Colorado area.
  • Northern California Division: North Region, existing Safeway division (based in Pleasanton, California). Includes stores in northern California and northwestern Nevada.
  • Portland Division: North Region, existing Safeway Portland division with Albertsons stores from Northwestern in Oregon. Includes the entire state of Oregon except for Ontario, plus Clark County, Washington.
  • Seattle Division: North Region, existing Safeway division with some Albertsons stores from Northwestern. Includes all stores in the state of Washington (except Clark County) and in the northern Idaho Panhandle.
Albertsons in Weatherford, Texas in May 2017 (Store #4176)
South Region
  • Houston Division: South Region, existing Randalls/Tom Thumb division of Safeway, with the inclusion of South's Florida stores and southern Louisiana stores. Tom Thumb moved to Southern Division. Includes stores in Houston and Austin-areas and all Louisiana and Florida stores.
  • Southern Division: South Region, existing Albertsons South division (based in Fort Worth, Texas) combined with Tom Thumb stores. Includes stores in northeastern Texas, northern Louisiana, and all of Arkansas.
  • Southern California Division: South Region, merged Vons Safeway division (excluding southern Nevada/Las Vegas stores, which became part of the new Southwest Division) with Albertsons division (based in Fullerton, California). Includes stores in southern California.
  • Southwest Division: South Region, merged Southwest Safeway and Albertsons divisions (based in Phoenix). Includes all stores in Arizona, southern Nevada, and Utah, most of New Mexico (except for Farmington which is part of the Denver Division and southeastern New Mexico which is part of the United Division), and El Paso, Texas.
  • United Division: South Region, existing United division (based in Lubbock). Includes stores in the Texas Panhandle and western Texas (excluding El Paso, which is part of the Southwest Division), and southeastern New Mexico.

Announcement and postponement of going public and A&P acquisition

[edit]

After several months of rumors, the combined operation announced it would go public as Albertsons Companies, Inc. (the new name of AB Acquisition LLC). Albertsons attempted to IPO with the ticker ABS on October 14, 2015, planning to raise as much as $1.7 billion, selling 65.3 million shares with a range of $23 - $26 per share. However, the company postponed the listing due to market conditions, particularly after Wal-Mart warned of more challenged sales earlier that day. Albertsons has reportedly postponed the IPO indefinitely, as of October 2015.[1] All during this time, Albertsons continued to expand, purchasing 70 stores owned by the bankrupt Great Atlantic & Pacific Tea Company (operating under the names of The Food Emporium, A&P, A&P Fresh, Superfresh, and Pathmark), which were quickly reopened as ACME stores after two-day store resets.[104][105]

Post-Safeway: Acquisitions, conversions, expansions, and selloffs

[edit]

As a result of the Albertsons-Safeway merger, Albertsons began to look to divest some stores in geographies where the merger could cause a high market share.[106] Some of these stores including one Albertsons and three Safeway stores in Wyoming were sold off to Ridley's Family Markets.[106][107]

An Albertsons that turned into Haggen before shuttering in Tigard, OR

Also at the time of the Albertsons-Safeway merger, the 18-store Pacific Northwest chain Haggen purchased 146 West Coast Vons, Pavilions, Albertsons, and Safeway locations that had to be sold due to anti-trust concerns, paying $300 million, plus spending $100 million to rebrand the stores. The FTC had hoped this would create a regional competitor for Albertsons.[108] On September 1, 2015, Haggen announced that the company had filed a lawsuit against Albertsons LLC and Albertsons Holdings LLC ("Albertsons") seeking more than $1 billion in damages.[109] The complaint, which was filed that day in United States District Court for the District of Delaware, alleged that following Haggen's December 2014 purchase of 146 Albertsons and Safeway stores, Albertsons engaged in "coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor in over 130 local grocery markets in five states", and "made false representations to both Haggen and the FTC about Albertsons's commitment to a seamless transformation of the stores into viable competitors under the Haggen banner".[110]

A week later Haggen filed for Chapter 11 bankruptcy and began the process of closing all but a few dozen 'core' stores in the Pacific Northwest.[111][112] Albertsons would buy back 33 of the stores being sold at auction.[113] In January 2016, Albertsons settled the lawsuit, agreeing to pay $5.75 million to Haggen, and subsequently reached an agreement to acquire the remaining 29 'core' Haggen stores located in Washington and Oregon for $106 million, the deal being approved on March 29, 2016.[108] As part of the deal, 15 stores would still operate under the Haggen banner, with the rest converted to Albertsons locations.

During this time, the Albertsons family experienced further changes. On January 11, 2016, it was announced that the three remaining Albertsons stores in Florida, located in Largo, Altamonte Springs and Oakland Park, would be re-bannered as Safeway; this marked the first time that the Safeway brand would exist on a supermarket operation in Florida.[114] It would also re-align the stores toward the Eastern Division. In 2016, smaller acquisitions included Homedale, Idaho-based Paul's Market and Santa Rosa, California-based G&G Supermarkets. Both brands were closed before they were converted into Albertsons and Safeway stores, respectively. Additionally, the United Supermarkets subsidiary acquired seven locations from Sweetwater, Texas-based Lawrence Brothers. These were converted into United Supermarkets or Albertsons Market stores.[115] In late 2016, it was announced that Andronico's in the San Francisco area would be acquired as well. These stores would become "Safeway Community Markets" and still hold what made Andronico's unique, including chef-prepared items. When the first store reopened in February 2017 under the ownership of the Northern California division, it was still bannered as Andronico's due to an issue in obtaining local permits but the other stores were able to reopen as Safeway Community Markets.[116]

On February 17, 2017, the Randalls store in south Katy, Texas, serving the Cinco Ranch area closed. On March 6, 2017, shortly after the Katy Randalls closure, it was announced that the Houston-area distribution center near Cypress, Texas, would be closed and the operations consolidated in the Roanoke, Texas, Tom Thumb distribution center in the Dallas–Fort Worth metroplex to supply the Houston- and Austin-area stores instead. Also, the Houston Division offices would be folded into the legacy Albertsons's South Division offices in Fort Worth.[117] Additionally, the stores in the Albuquerque market were realigned toward the United Supermarkets division.[118] On September 20, 2017, Albertsons acquired meal kit company Plated for $200 million.[119]

During the time after the Albertsons-Safeway merger, Albertsons was experimenting with different banners, converting many stores to Safeway, including many Colorado Albertsons locations.[120] With this rebranding also came additional closures, such as Centennial, Colorado.[121] Some exceptions include Pueblo and Durango in Colorado, which are owned by a different division.[122]

Albertsons Express expansion

[edit]

To start off 2018, Albertsons began to reenter the fuel market, opening a brand new Albertsons Express in Boise, ID at the site of a former Pizza Hut; this also introduced a new concept to the state of Idaho's gas stations, where the pumps are chip-credit-card enabled.[123] At least one Albertsons Express from the original generation of Albertson's fuel centers located in Hillsboro, Oregon,[34] remained open in the relaunch of Albertsons Express. As of September 2021, there are exactly seven Albertsons Express across America. They are located in Idaho with three sites; and in Louisiana, Nevada, Oregon, and Texas with one site each.[124]

Additional acquisitions and closures

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On February 20, 2018, Albertsons announced plans to acquire Rite Aid, subject to shareholder and regulatory approval.[125] In addition to retaining the stand-alone Rite Aid pharmacies, its Osco and Sav-on pharmacies located in Albertsons's existing stores were expected to be replaced by Rite Aid pharmacies. On August 8, 2018, Rite Aid announced that the plan had failed to please shareholders and the proposed acquisition would be canceled.[126]

That same year, Albertsons closed several stores across multiple divisions, including all three Safeway stores in Florida. These stores were sold to Publix for an undisclosed price. With the closing, Albertsons officially exited the state, which it had been in since the late 1970s when they acquired their Skaggs Albertsons stores.[127] Additionally, the company divested its share in Casa Ley, selling it to Tenedora CL del Noroeste.[128]

Checkouts at a Safeway during COVID-19

Also that year three new Lucky locations in Utah opened, two in West Valley City and Salt Lake City, replacing the last two Super Saver stores, and one in Tooele, replacing a former Albertsons store. The next year, a location in West Jordan, Utah, opened, replacing another Albertsons that closed in the late 2000s.

In 2019, Albertsons opened Albertsons Market Street in Meridian, Idaho, a flagship store located in a converted ShopKo store and based on the Market Street brand of United Supermarkets. This became Albertsons's largest store at 110,000 square feet and featured a variety of departments exclusive to the store or found rarely in the chain, including an oyster bar, a full bar area, and in-house sausages.[129] Additionally, around the same time, a new Andronico's Community Markets opened in Monterey, California, the first new store to be branded as such.[130]

In 2020, Albertsons announced the closing of a distribution center in Upper Marlboro, Maryland, laying off up 520 people. Albertsons said its duties will be shifted to an existing distribution center in Lancaster, Pennsylvania, which will add up to 300 workers.[131] Due to the COVID-19 pandemic, Albertsons's total sales experienced a growth of 27% compared to the previous year. The rise in sales and higher traffic came as a result of the COVID-19 pandemic which resulted in gross sales of $22.8 billion in the second quarter of 2020.[132] Additionally, the company finally went public in June 2020 after years of delays. [133] The potential IPO for the company could be valued at around $19 billion.[134][135][136][137] During the time of going public, one more division change was announced when the Mid-Atlantic Division was created by combining Eastern and ACME Markets, and based out of ACME's headquarters in Malvern, PA [138] In October 2020, Albertsons submitted a winning bid for the Kings Food Markets/Balducci's chain. These will be merged into the Mid-Atlantic Division.[139]

Failed acquisition by Kroger

[edit]

On October 14, 2022, Kroger announced its intent to merge with Albertsons, with Kroger acquiring all Albertsons shares and divesting some stores to secure regulatory approval. The $24.6 billion transaction was expected to close in early 2024.[140][141] The announcement was met with criticism due to the potential for monopolies to form in some U.S. cities that have few other grocery chains, as well as food deserts that would form from store closures.[142][143]

On November 1, 2022, Washington Attorney General Bob Ferguson filed a lawsuit in King County Superior Court against Albertsons and Kroger seeking to halt the payment of a $4 billion dividend to Albertsons shareholders. The lawsuit aims to prevent Albertsons from winding down operations and preparing store closures during regulator review of the merger.[144] Other state attorneys general have also investigated the merger according to Reuters.[145] In February 2024, the FTC sued to block the acquisition stating that the deal would negatively impact consumer prices and workers' wages.[146]

In February 2024, the Federal Trade Commission (FTC) and attorney generals in eight states filed an anti-trust lawsuit to stop the merger.[147][148] The case went to trial in August 2024.[149]

In October 2024, Albertsons settled a lawsuit filed by prosecutors in five California counties. The allegations include price overcharging and false weight advertising.[150][151][152]

In December 2024, "a federal court issued a preliminary injunction on Tuesday against the proposed merger of grocery giants Kroger and Albertsons, siding with the Biden administration. … The $25 billion deal would have merged the country's second and fourth-largest grocers by market share, with Kroger trailing only Walmart and Albertsons sitting behind Costco."[153]

On December 11, 2024, Albertsons Companies, Inc. announced the termination of its merger agreement with Kroger. This decision followed injunctions issued by the U.S. District Court in Oregon and the King County Superior Court for the State of Washington, which blocked the proposed $25 billion merger. In response to the failed merger, Albertsons filed a lawsuit against Kroger in the Delaware Court of Chancery, alleging willful breach of contract and seeking billions of dollars in damages. The termination entitled Albertsons to an immediate $600 million termination fee and removed contractual constraints on pursuing other strategic opportunities. Following these events, Albertsons announced plans to accelerate its "Customers for Life" strategy, increase its quarterly cash dividend by 25%, and authorize a $2 billion share repurchase program.[154][155]

Chains

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Albertsons grocery store logo
Jewel-Osco locations in purple, ACME in red, Shaw's in orange, and Albertsons in blue (1995–2007)

Albertsons operates stores under the following banners:[156]

Former banners/chains/names:

Brands

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Albertsons once owned several store brands ("private label" brands), often bearing the name of the chain sold under, e.g. "Jewel" brand products in the Jewel and Jewel-Osco locations. Other Albertsons brands over the years have included A+, Good Day, Janet Lee (named after the executive vice-president's daughter), Master's Choice, and Village Market. The drug store brands (used for health and beauty aids, over-the-counter medications, and intimate paper goods) were consolidated under the name "Equaline", rather than the previous "Sav-On Osco by Albertsons" brand. Albertsons introduced an upscale private label brand, "Essensia", in 2003, which was later renamed by SuperValu as Culinary Circle.

Store brand items in Albertsons stores included Albertsons (national brand quality food), Arctic Shores (frozen seafood), Baby Basics (diapers and infant care items), Culinary Circle ("gourmet" foods and ready-made meals), Equaline (health and beauty products), Farm Fresh (fresh produce), Flavorite (national brand quality foods, used throughout Supervalu stores), Homelife (national brand quality non-foods), Java Delight (coffee), Shoppers Value (value-priced items), Stockman & Dakota (high-quality beef), Stone Ridge (ice cream and sherbet), Super Chill (soft drinks and mixers), Whole Care Pet (pet foods and supplies), and Wild Harvest (natural and organic foods). In 2011, SuperValu announced it would eliminate Flavorite and all brands named after the chains it operates (such as Albertsons, Jewel, and Shaw's) and would replace those labels with a new label, Essential Everyday.

After its purchase of Safeway, Albertsons began replacing some of its brands with Safeway's. O Organics and Open Nature replaced Wild Harvest, Pantry Essentials replaced Shoppers Value, and Refreshe replaced Super Chill. By late 2015, the remaining store brands were replaced with "Signature" (formerly Safeway Care, Farms, Home, and Kitchens). Albertsons started selling Lucerne dairy products, Mom To Mom baby products, and Priority Pet Food as well.

Albertsons Companies line of Own Brands [183] products launches 1,100 brand new items a year, making it one of the most diverse in-house brands in the country. Albertsons Companies' O Organics line is one of the nation's largest brand of USDA-certified organic products, with annual sales over $1 billion; it offers a wide array of products, for a variety of customers.

Some of the brands in use are:

  • Signature Select - Main line of grocery products
  • Debi Lilly Design - Floral and home décor products
  • Lucerne Dairy Farms - Main dairy brand, used for ice cream, cheese, yogurt, and milk
  • O Organics - Organic products
  • Open Nature - 100% natural products
  • Primo Taglio - Deli brand for meat and cheese
  • Signature Cafe - Brand used for things sold at the Deli counter, soups, and refrigerated food made by the Deli and sold in the Deli Department
  • Signature Care - Home and wellness products
  • Signature Farms - Produce Department brand for fresh fruits and vegetables
  • Signature Reserve - Premium alternative to products in the Signature Select line
  • Value Corner - A cheaper alternative to products in the Signature Select/Lucerne line
  • Waterfront Bistro - Frozen seafood products[184]

Operations

[edit]

On average, stores in the Albertsons Companies range between 50,000 square feet (4,600 m2) and 70,000 square feet (6,500 m2)[185] and almost universally feature a bakery, deli, meat counter, produce department, and seafood counter; many of the stores also feature in-store banks and pharmacies. Larger and newer stores may also offer enhanced amenities, including Starbucks coffee counters, prepared foods, in-store pizza, salad bars, and juice bars.[186][citation needed]

Sustainability and animal welfare

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In 2016, Albertsons announced that it would transition to sourcing only cage-free eggs by 2025.[187]

In 2023, Albertsons announced that it would ensure that their Own Brands packaging is 100% recyclable by 2025, and reach zero food waste to landfill by 2030 .[188]

References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

Albertsons Companies, Inc. is an American food and drug retailing company headquartered in , founded in 1939 by , a former executive, who opened the first store in with $12,500 in capital.
The company has expanded significantly through organic growth and acquisitions, including the 2015 merger with , to become the second-largest supermarket operator in the United States, with over 2,200 stores operating under various regional banners such as Albertsons, , , and . As of early 2025, it managed 2,270 retail locations, including 1,728 in-store pharmacies, primarily in the western and . In fiscal 2024, Albertsons generated net sales exceeding $80 billion, reflecting its scale as a key player in the competitive grocery sector amid challenges like pressures and labor negotiations. A notable recent event was the failed $24.6 billion merger with , proposed in 2022 but terminated in December 2024 after federal and state regulators blocked it on antitrust grounds, leading to subsequent litigation between the parties.

History

Founding and Initial Growth (1930s–1960s)

Albertsons was founded on July 21, 1939, by Joe Albertson, a former district manager for Safeway Stores, in Boise, Idaho. Albertson invested $5,000 of his personal savings and borrowed an additional $7,500 from his wife's aunt to partner with L.S. Skaggs and Tom Cuthbert in opening the first store, located at the intersection of 16th and State Streets. The store operated on three core principles: high-quality products, competitive pricing, and superior customer service, which differentiated it from smaller competitors of the era. The initial store pioneered several features ahead of its time, including a spacious 10,000-square-foot layout that incorporated a , magazine racks, and elements of one-stop shopping, attracting customers seeking convenience during the late . Buoyed by early success, the partners opened a second location in , in June 1940, followed by a third in , later that year. Despite wartime challenges such as food in the , Albertsons maintained growth within by adhering to efficient operations and customer-focused innovations. Expansion accelerated in the as Albertsons ventured beyond into neighboring states including , , , and Washington, establishing a regional presence through new store builds and operational efficiencies. By the mid-1950s, the chain was firmly rooted in a four-state territory of , , , and Washington. In 1957, the company constructed its first dedicated frozen foods distribution center to support growing demand for perishable goods, marking an early investment in infrastructure that facilitated further scalability into the .

Expansion Through Partnerships and Acquisitions (1970s–1990s)

In 1969, Albertsons entered a with , Inc., focusing on the development of combination food and pharmacy stores that integrated grocery retailing with drugstore operations. This collaboration enabled Albertsons to test and refine the combo-store format in markets such as and , where the first such locations opened, leveraging Skaggs' expertise in drug retailing to broaden Albertsons' service offerings without immediate full-scale ownership risks. By the mid-1970s, the partnership had produced over 30 joint stores, contributing to Albertsons' revenue growth through diversified product lines and operational efficiencies in high-traffic locations. Although merger discussions arose in the early , Albertsons and Skaggs opted against consolidation due to incompatible long-term strategies, leading to an amicable dissolution of the in 1977. The assets were divided evenly, with Albertsons acquiring full control of 17 stores primarily in western states like and , while Skaggs retained the remainder and rebranded them under its umbrella. This split allowed Albertsons to integrate the retained locations into its core operations, accelerating independent expansion into combination formats and supporting a store count increase from approximately 300 in 1970 to over 400 by 1980 across 13 states. The 1980s marked a shift toward targeted acquisitions to penetrate southern markets. In 1988, Albertsons completed the purchase of , a regional chain based in , , adding 46 supermarkets and enhancing its foothold in the competitive Texas grocery sector. This move diversified Albertsons' geographic presence beyond the West, with the acquired stores generating additional annual sales volume estimated at $500 million. Expansion intensified in the 1990s through opportunistic buys from larger rivals. In 1992, Albertsons acquired 72 underperforming stores from American Stores Company in , , , and , converting many to its proprietary formats and bolstering market share in the Southwest. Later in the decade, it purchased Buttrey Food & Drug Stores in 1998, incorporating 27 locations in and , and Seessel's Supermarkets in 1999, adding upscale operations in . The decade's pinnacle was the $11.7 billion acquisition of American Stores Company in June 1999, which integrated banners like , , and Osco Drug, expanding Albertsons to over 2,400 stores nationwide and briefly positioning it as the largest U.S. food and drug retailer by sales. These deals, approved after FTC-mandated divestitures of overlapping assets, emphasized scale economies but drew scrutiny for potential antitrust effects in concentrated urban markets.

Financial Restructuring and Ownership Shifts (2000s)

In the early 2000s, Albertsons faced integration challenges and financial pressures following its 1999 merger with Company, which had increased operational complexity and costs. By 2001, the company reported sales of $37.9 billion, a 3.2% increase from $36.8 billion the prior year, but profitability was strained by underperforming assets and rising competition from discount retailers like . In July 2001, under new CEO Gary Michael, Albertsons announced a major restructuring plan to close 165 underperforming stores across 25 states and eliminate 12,000 to 13,000 jobs, representing about 10% of its workforce, with a projected one-time pre-tax charge of $585 million primarily for severance, lease terminations, and asset write-downs. This initiative aimed to streamline operations, reduce costs by approximately $200 million annually, and refocus on core markets, though it reflected broader struggles with aging store formats and market share erosion. Persistent competitive pressures, including low-price competition and stagnant same-store sales growth, eroded Albertsons' , with its stock price declining significantly by mid-decade. These factors prompted the board to explore strategic alternatives, culminating in a decision to divest the company rather than pursue further internal fixes. On January 23, 2006, Albertsons agreed to a $17.4 billion transaction (including $9.7 billion in cash and stock plus $7.7 billion in assumed debt) to sell its assets to a comprising SuperValu Inc., CVS Corporation, and a Cerberus Capital Management-led investor group that included Kimco Realty Corporation, Schottenstein Stores Corp., and Lubert-Adler Partners. The deal effectively privatized and fragmented the , addressing its $7.7 billion debt load and operational inefficiencies by separating complementary but non-core units. Under the agreement, SuperValu acquired approximately 1,100 stores and related operations in the Northeast and Midwest, including banners such as , , Shaw's Supermarkets, and Star Markets, for about $9.7 billion, bolstering its scale in those regions. CVS purchased the Sav-on and Osco pharmacy chains, comprising around 950 stores, for roughly $1.1 billion, allowing it to expand its retail pharmacy footprint. The Cerberus-led group took control of 655 supermarkets primarily in the Southwest and —concentrated in markets like /Fort Worth, , Phoenix, /Tacoma, and Portland—along with associated distribution centers and offices, for an equity investment of about $1.6 billion (with contributing around $350 million focused initially on real estate value). This portion formed the basis of the new private entity, Albertsons LLC, emphasizing turnaround potential in underinvested assets. Shareholders approved the transaction on May 31, 2006, and it closed on June 2, 2006, marking the dissolution of Albertsons Inc. as a unified public entity. The split enabled targeted management under new ownership, though it initially led to further store rationalizations, including plans to shutter about 100 additional locations deemed non-viable post-divestiture. Cerberus's approach prioritized and operational efficiencies, setting the stage for later consolidations, while SuperValu and CVS integrated their acquisitions to varying degrees of success amid ongoing industry consolidation.

Revival and Major Consolidations (2010s)

In January 2013, AB Acquisition LLC, the Capital Management-led entity controlling Albertsons since , repurchased 877 stores and related operations from Supervalu Inc., including the Albertsons, , , Shaw's Supermarkets, and banners, for approximately $3.7 billion, which encompassed $3.2 billion in assumed debt and $100 million in cash. This transaction reversed much of the 2006 divestitures following Albertsons' financial distress, consolidating fragmented assets under single ownership and expanding the footprint to over 1,100 stores across 29 states, marking a key step in operational stabilization and scale recovery. Later in September 2013, AB Acquisition acquired LLC, a Texas-based chain with over 40 stores operating under the United, Market Street, and Amigos banners, in an all-cash deal whose terms were not publicly disclosed, allowing United to continue as a distinct unit focused on regional markets in and . This move enhanced Albertsons' presence in the Southwest, adding specialized formats like in-store delis and pharmacies tailored to local preferences. The decade's pivotal consolidation occurred on January 30, 2015, when AB Acquisition completed its $9.2 billion merger with Inc., creating a combined entity with 2,400 stores, 27 distribution centers, 19 manufacturing plants, and annual sales exceeding $36 billion, operating under banners such as , , Pavilions, and . approval required divestiture of 168 stores in overlapping markets across eight states to four buyers, including Haggen Inc., to preserve competition, though subsequent buyer failures like Haggen's 2015 led to further asset reallocations. Post-merger, AB Acquisition rebranded as Albertsons Companies Inc., filed for an in 2015 (later withdrawn amid market volatility), and pursued internal synergies like unified supply chains to drive efficiency amid intensifying competition from discounters like and . These actions collectively revived Albertsons from post-2006 fragmentation, positioning it as the second-largest U.S. operator by store count behind .

Recent Strategic Moves and Merger Challenges (2020s)

In October 2022, Albertsons Companies agreed to be acquired by in a $24.6 billion all-stock deal, aiming to create a larger entity to compete with and Amazon in grocery retail. The proposal faced immediate antitrust scrutiny from the U.S. (FTC) and multiple state attorneys general, who argued it would reduce competition, raise prices, and harm consumers and workers in overlapping markets. To address concerns, committed to divesting up to 650 stores primarily to , but regulators deemed the package insufficient, citing risks of coordinated pricing power post-merger and C&S's limited retail experience. Federal and state courts issued injunctions blocking the deal in August and September 2024, prompting Albertsons to terminate the agreement on December 11, 2024, after paying a $600 million breakup fee. Post-termination, legal disputes escalated as Albertsons sued on December 11, 2024, alleging for failing to secure regulatory approval through inadequate divestitures and ignoring concerns, seeking over $1 billion in plus the reversal of the breakup fee. countersued in March 2025, claiming Albertsons undermined the deal by colluding with C&S on regulatory strategy and demanding $500 million in fees it argued were owed. By August 2025, and C&S settled disputes over divested assets, allowing C&S to retain certain stores amid ongoing litigation between the grocers. These challenges highlighted broader antitrust enforcement trends under the FTC, with critics noting the agency's aggressive stance reflected heightened scrutiny of horizontal mergers in concentrated industries like , where the top players control over 50% of U.S. sales. Shifting to independent growth, Albertsons accelerated its "Customers for Life" strategy in 2025, unveiling a unified overhaul on August 27 to optimize procurement, reduce costs, and enhance value pricing across banners. This included restructuring national and divisional teams, appointing Ania Smith as chief merchandising officer on September 3, and emphasizing digital integration and retail media expansion. The company committed to $1.5 billion in cost savings over three years, initiating over 370 corporate layoffs, while announcing a $750 million in October 2025 to boost amid stable revenue. CEO Vivek Sankaran affirmed ongoing investments in capabilities, stating the firm never paused business enhancements during merger uncertainty. No major acquisitions occurred post-2020, with focus on organic efficiencies to counter and rivals.

Corporate Structure and Ownership

Governance and Leadership

Albertsons Companies, Inc. operates under a that oversees strategic direction and , with the board electing a annually who may or may not serve as CEO. The current is Kim Fennebresque, elected on September 17, 2025, following the retirement of Jim Donald, who had led the board since 2019. Susan Morris serves as , having assumed the role on May 1, 2025, succeeding Vivek Sankaran after his six-year tenure focused on operational efficiencies and digital investments. Morris, previously executive vice president and chief operations officer, joined the company in 2015 and was appointed to the board upon becoming CEO. The board comprises independent directors including Sharon L. Allen, Frank W. Bruno, Lisa Gray, Sarah Mensah, and the newly appointed David Zinsner, executive vice president and CFO of Intel Corporation, effective September 2025. This composition reflects a majority-independent structure, with committees handling , compensation, , and matters as outlined in the company's guidelines. Cerberus Capital Management, L.P., the largest shareholder with approximately 26% ownership as of June 2025, exerts influence through its stake but operates within governance norms post-2020 IPO. Recent board changes, including Fennebresque's elevation and Zinsner's addition, aim to enhance strategic oversight amid competitive pressures and past merger attempts.

Subsidiaries, Brands, and Store Formats

Albertsons Companies, Inc. manages its retail operations through a network of subsidiaries, each responsible for specific regional banners and store operations. Significant subsidiaries include , which oversees western and select eastern U.S. stores; Acme Markets, Inc. and Jewel Food Stores, Inc., operating in the Mid-Atlantic and Midwest; and Star Markets Company, Inc. in ; Vons Companies, Inc. in ; Randall’s Food Markets, Inc. in ; and , managing Texas-based chains. These entities handle day-to-day retail activities, including approximately 2,200 stores across 35 states and the District of Columbia as of 2023. The company's store banners number around 20, reflecting acquisitions and regional adaptations, with major formats including Albertsons (western U.S. supermarkets), (broad western and former East Coast operations), (), ( area combo stores), (Northeast), and ( upscale), Pavilions ( premium), (), Shaw’s and (), , Amigos ( ethnic-focused), Market Street ( fresh-oriented), ( upscale), Haggen (Northwest fresh format), Andronico’s (Bay Area gourmet), and Balducci’s (East Coast specialty). Banners like and emphasize combo formats integrating grocery with pharmacies or fuel centers to boost sales volume. Albertsons' private label brands form a core competitive element, with Signature SELECT® as the flagship offering over 8,000 everyday items across categories like pantry staples and household goods. Complementary brands include O Organics® for certified organic products, Open Nature® for natural and antibiotic-free foods, for dairy, Primo Taglio® for meats and cheeses, ReadyMeals® for prepared foods, Soleil™ for beauty, Value Corner® for budget options, and Overjoyed™, launched in 2024 for indulgent treats like baked goods and candies. In 2023, the company consolidated sub-brands like Signature Farms and Signature Cafe under Signature SELECT to streamline offerings and enhance perceived quality. Store formats are predominantly full-service supermarkets averaging 50,000 to 70,000 square feet, equipped with in-house bakery, deli, fresh meat and seafood counters, produce sections, and pharmacies in most locations. Variations by banner include premium fresh-focused layouts in Haggen and Market Street stores, ethnic assortments in Amigos, and upscale gourmet selections in Pavilions and Balducci’s, all designed to align with local demographics while maintaining national supply chain efficiencies. Fuel centers operate at over 1,000 locations under banners like Albertsons Express, integrating convenience retail with grocery access.

Operations and Supply Chain

Retail Formats and Geographic Footprint

Albertsons Companies operates primarily full-service supermarkets under 22 regional banners, many of which integrate services and are co-located with centers. The company maintains distinct local brands to preserve regional customer loyalty and market positioning, rather than standardizing under a single national format. Common store types include traditional grocery stores offering fresh produce, , , and deli departments with prepared foods and catering options such as party platters—including large 18-inch trays serving 25-30 people, with vegetable trays priced $49.99–$59.99 and meat and cheese trays at $54.99 (prices vary by location, store, availability, and time, as at Albertsons in Henderson, NV, or under sister brands like )—alongside general merchandise and health products. As of September 6, 2025, Albertsons Companies managed 2,257 retail food and drug stores across 35 states and the District of Columbia, with 1,717 pharmacies and 404 associated fuel centers. The geographic footprint emphasizes the , including heavy concentrations in and Washington, but extends eastward through acquisitions like and . Key banners include Albertsons (primarily Western states), (West Coast and select Midwest), and Pavilions (Southern ), ( and surrounding areas), (Northeast), (), and with sub-brands like Market Street and Amigos ( and Southwest). Many locations employ combo formats combining supermarket operations with full-service pharmacies, as seen in Jewel-Osco stores and historical Albertsons-Sav-on integrations, which expand square footage to approximately 80,000-100,000 square feet per site and boost non-perishable sales. Fuel centers, often branded under banners like Chevron or Shell partnerships, serve as convenience adjuncts to core grocery operations. This diversified format strategy supports adaptability to local demographics while prioritizing comprehensive one-stop shopping.

Technology and Innovation Initiatives

Albertsons Companies has pursued through investments in AI, data analytics, and cloud infrastructure to enhance and . In 2025, the company expanded its AI capabilities by deploying replenishment solutions across all fresh departments, including and deli, utilizing Afresh's AI-powered tools for inventory management and . This initiative, completed in October 2025, integrates to optimize ordering and reduce waste in over 2,000 stores, extending AI upstream to distribution centers via modules like DC Forecasts. The retailer has formed strategic technology partnerships to drive innovation, including a collaboration with Cloud announced in September 2025 to implement AI-driven personalization in grocery shopping experiences. These efforts contributed to a 25% increase in digital for the quarter ended June 14, 2025, surpassing overall identical growth of 2.8%, aided by interactive features and generative AI applications. Customer-facing innovations include a digital recipes and meal planning tool featuring over 900 shoppable recipes, customizable filters for dietary preferences, restrictions, and dislikes, nutritional information, hands-free cooking mode with timers, and easy addition to shopping carts or lists. In December 2025, Albertsons launched the AI Shopping Assistant to generate personalized meal plans, suggest recipes from existing home ingredients to reduce waste, and integrate directly with shopping carts. Additionally, Albertsons established a global tech and innovation center in Bengaluru, , in August 2025, led by CEO Sunil Gopinath, focused on developing scalable solutions for core business functions such as AI agent deployment. In retail media, Albertsons Media Collective has innovated with in-store digital display networks, launching screens in high-traffic areas in June 2025 in with STRATACACHE and featuring Mondelēz as the inaugural brand. This complements broader digital ecosystem builds, emphasizing shopper simplicity and data-driven advertising, including integrations for performance measurement with partners like in January 2025. The company's approach prioritizes practical AI implementation over hype, balancing startup collaborations with enterprise-scale reliability to support seamless retail operations.

Workforce Management and Labor Practices

Albertsons Companies employed approximately 285,000 associates as of February 24, 2024, with about 62% in part-time roles and roughly 200,000 covered by agreements primarily with the (UFCW) union. The workforce spans retail operations, distribution centers, and corporate functions, with a focus on flexible scheduling to match store demands, though employee reviews indicate challenges in securing consistent hours without across departments. Compensation includes hourly wages averaging around $15.94, varying by role from $11.92 for entry-level positions to over $22 for supervisory duties, supplemented by union-negotiated increases and performance-based adjustments. Benefits encompass paid time off, , plans, and employee discounts, with full-time associates eligible for comprehensive coverage including benefits and financial wellness programs; however, part-time workers often receive scaled versions, contributing to union demands for during negotiations. Training programs emphasize on-the-job instruction, safety protocols, , and operational skills, with new hires typically receiving 40 hours of initial orientation followed by role-specific modules; leadership development initiatives target advancement into , though some associates report inconsistencies in delivery, particularly for store directors. Payroll processing has been streamlined via Oracle Cloud Infrastructure since 2022, reducing production time by 50% for the large employee base and enabling scalable handling of variable shifts. Labor relations have been marked by tensions with UFCW locals, including multiple unfair labor practice charges in 2024-2025 alleging worker surveillance, threats of termination, and stalled contract talks amid short-staffing and wage freezes. Strike authorizations occurred in regions like Southern California (45,000 workers in June 2025), Colorado (two-week actions ending July 2025), and Idaho (Boise-Nampa stores), often tied to broader concerns over merger impacts and post-pandemic staffing cuts, though tentative agreements averted widespread walkouts. A 2025 settlement resolved an off-the-clock wage lawsuit, distributing $53.3 million to affected UFCW members and others, highlighting ongoing scrutiny of timekeeping practices. Corporate layoffs in early 2025 targeted division support roles to reduce expenses, reflecting cost-control measures amid competitive pressures, without reported union involvement in those actions. Union perspectives dominate public accounts of disputes, with limited company counter-statements available, underscoring the adversarial dynamic in bargaining.

Financial Performance

Albertsons Companies' net sales and other grew from $69.35 billion in 2020 to $80.391 billion in 2025, reflecting a of approximately 3% amid pandemic-driven demand surges and subsequent stabilization. The sharp 13.63% increase in fiscal 2020 stemmed from elevated grocery purchases during , while later years showed more modest gains of 1.33% in fiscal 2021, 9.24% in fiscal 2022 (boosted by and recoveries), 3.12% in fiscal 2023, 2.05% in fiscal 2024, and 1.46% in fiscal 2025. This trajectory indicates reliance on volume and pricing rather than significant store expansion, with identical-store sales contributing positively but variably; for instance, second-quarter fiscal 2025 identical sales rose 2.2%, driven by 23% growth in digital sales, though adjusted for strikes and other disruptions. Profitability metrics have faced headwinds from rising labor, , and supply costs, leading to EBITDA contraction in recent years despite gains. Fiscal EBITDA totaled $4.513 billion, down 5.32% from $4.767 billion in fiscal 2023, with trailing twelve-month EBITDA at $3.66 billion as of mid-2025 reflecting ongoing margin pressures. improved slightly to $1.295 billion in fiscal 2024 from $1.21 billion in fiscal 2023, but trailing twelve-month figures stood at $977.3 million, underscoring challenges like wage inflation and competitive . Gross margins hovered around 27-28% in recent quarters, supported by and segments, which generated about $9.6 billion in fiscal 2024 revenues.
Revenue ($B)YoY Growth (%)EBITDA ($B) ($B)
202069.3513.63N/AN/A
202170.271.33N/AN/A
202276.769.24N/AN/A
202379.163.124.7671.21
202479.242.054.5131.295
202580.391.46N/AN/A
Data compiled from aggregated financial histories; earlier EBITDA/net income figures unavailable in sourced summaries. Trailing twelve-month as of 2025 reached $81.37 billion, with adjusted EBITDA margins at 4.5% for the second fiscal quarter, signaling cautious amid economic volatility.

Capital Investments and Shareholder Actions

In fiscal 2024, Albertsons Companies invested $1,931.2 million in capital expenditures, primarily supporting 127 store remodels, the opening of 11 new stores, and enhancements to and technology infrastructure. These investments aligned with ongoing efforts to modernize retail formats and improve amid competitive pressures in the grocery sector. For fiscal 2025, the company projected capital expenditures between $1.7 billion and $1.9 billion, continuing emphasis on remodels, new store openings, and digital capabilities. Capital spending in the first half of fiscal 2025 totaled $950.5 million, with second-quarter expenditures declining 10.6% year-over-year to $365.9 million, reflecting a strategic possibly influenced by merger-related uncertainties and economic conditions. Regarding shareholder actions, Albertsons returned $295.1 million to in fiscal 2024 through . The company declared a quarterly of $0.15 per share for the third quarter of fiscal 2025 on October 14, 2025, payable to of record. In parallel, share repurchases advanced, with 25.7 million shares bought back for $550.1 million in the first 28 weeks of fiscal 2025. On October 14, 2025, Albertsons entered a $750 million agreement with , elevating the total repurchase authorization to $2.75 billion. These moves underscore a commitment to enhancing amid stable cash flows, though executed against a backdrop of regulatory scrutiny over the proposed merger.

Market Position and Competition

Competitive Landscape

Albertsons Companies competes in the fragmented grocery retail sector, where maintains dominance with approximately 25% of national grocery sales as of 2024, driven by its extensive supercenter network and everyday low pricing strategy. , the second-largest player with an 8.6% , challenges Albertsons through aggressive expansion, private-label brands, and digital integration, operating over 2,700 stores under various banners. Wholesale, emphasizing bulk sales and membership models, holds a comparable share to Albertsons at around 5-6%, appealing to value-conscious consumers with low-margin, high-volume operations. Regional and discount competitors further pressure Albertsons, including Publix Super Markets (4.1% share, focused on Southeastern fresh produce and customer service) and Aldi (rapidly expanding low-cost model with private labels comprising 90% of inventory). Albertsons, with roughly 5% market share and annual grocery revenues exceeding $70 billion, differentiates via its portfolio of over 2,200 stores under banners like Safeway and Jewel-Osco, targeting upscale and mid-market segments with pharmacy services, fuel centers, and loyalty programs such as Just for U for personalized pricing. However, Walmart's grocery sales growth—reaching $260 billion in fiscal 2024—has eroded traditional supermarkets' positions, including Albertsons, amid shifting consumer preferences toward one-stop shopping and e-commerce.
RetailerApprox. Grocery Market Share (2024)Key Strengths
25%Scale, low prices, supercenters
8.6%Store density, digital loyalty
~6%Bulk wholesale, membership efficiency
Albertsons5%Regional banners, pharmacy integration
4.1%Fresh focus, employee ownership
The rise of non-traditional entrants like Amazon (via Whole Foods and online delivery) and dollar stores (e.g., Dollar General's food expansion) intensifies price competition, prompting Albertsons to invest in efficiencies and capabilities to retain market position. Despite these efforts, Albertsons has experienced gradual share erosion, contrasting Walmart's gains, as consumers prioritize affordability amid pressures persisting into 2025.

Economic Impact and Industry Influence

Albertsons Companies operates approximately 2,273 retail food and stores across 34 states and the District of Columbia as of the third quarter of fiscal , employing 285,000 associates, including 108,300 full-time and 176,700 part-time workers. With net sales and other revenues exceeding $80 billion in fiscal , the company ranks as one of the largest contributors to the U.S. retail sector, supporting economic activity through direct , payments, and from suppliers. This footprint sustains jobs in distribution, , and ancillary services, particularly in suburban and rural areas where Albertsons banners like and serve as primary grocery outlets. The company's operations generate substantial indirect economic effects via its , sourcing from domestic farmers, processors, and manufacturers to stock perishables, non-perishables, and items, with the non-perishables segment alone contributing over $30 billion in revenues. By leveraging its scale for , Albertsons influences input costs across the , enabling competitive retail pricing but also pressuring suppliers to maintain margins amid volatile commodity prices and trade policies. For instance, in April 2025, Albertsons instructed vendors to absorb tariff-induced cost hikes rather than pass them to the retailer, reflecting its as a top buyer. Such practices contribute to overall grocery sector efficiencies, though critics argue they exacerbate consolidation's squeeze on smaller producers. In terms of industry influence, Albertsons commands an estimated 9.4% share of the U.S. supermarkets and grocery stores market, positioning it as a key player behind and in shaping competitive standards for loyalty programs, digital sales, and private-label development. Its historical acquisitions, including in 2015, have accelerated grocery consolidation, reducing the number of independent operators and concentrating purchasing power among top chains that control over 50% of sales. The blocked 2022 merger attempt with , valued at $24.6 billion, highlighted Albertsons' role in debates over , with proponents citing potential savings and opponents warning of diminished local and upward pressure on prices. Despite the failure, Albertsons continues to drive innovations like integrated fuel centers and pharmacy services, influencing peers to adopt similar strategies amid e-commerce growth from rivals like Amazon.

Controversies and Criticisms

Antitrust Scrutiny and Failed Mergers

In October 2022, Kroger announced a $24.6 billion all-stock acquisition of Albertsons, aiming to create the largest U.S. operator with over 13,000 stores and combined annual sales exceeding $150 billion. The deal immediately drew antitrust scrutiny from regulators, including the (FTC), multiple state attorneys general, and consumer advocates, who argued it would diminish competition in grocery retail, particularly in overlapping local markets where the combined entity would control significant shares, potentially leading to higher prices, reduced quality, and fewer consumer choices. To address these concerns, and Albertsons proposed divesting over 400 stores to , along with licensing for banners like and 's data analytics platform, claiming this would preserve and enable efficiencies to counter non-union rivals like and Amazon. However, the FTC rejected the proposal as insufficient in February 2024, filing suit to block the merger and alleging the divestitures would create a "hodgepodge" of unconnected assets unlikely to sustain viable , with evidence from internal documents showing anticipated price hikes post-merger. States like and Washington joined the challenge, citing presumptively unlawful concentration in regional markets. Federal and state courts ultimately halted the deal in December 2024. A U.S. District Court in issued a preliminary on December 10, finding the FTC likely to succeed on merits that the merger violated Section 7 of the Clayton Act by substantially lessening competition, based on data and econometric models projecting price increases of 9-14% in affected areas without effective divestiture remedies. Concurrently, a Washington state court blocked the merger, reinforcing concerns over local market dominance. The following day, December 11, Albertsons terminated the agreement, paying a $600 million reverse termination fee, and sued in Chancery Court for willful , alleging Kroger failed to pursue "any and all actions" to secure approval, including adequate divestitures and engagement with regulators. Kroger countersued in March 2025, denying breach and claiming Albertsons improperly terminated while seeking to avoid its obligations, with the litigation ongoing as of October 2025 and potentially involving billions in damages. This episode marked the largest blocked merger in U.S. history, highlighting intensified antitrust enforcement under FTC Chair , who prioritized structural remedies over behavioral fixes in concentrated industries. Earlier antitrust challenges include Albertsons' abandoned 2015 bid to acquire for $9.4 billion, dropped amid FTC review due to overlapping pharmacy operations that would have reduced competition in drug retail, forcing a pivot to the approved $9.4 billion merger with required divestitures of 168 stores. These cases underscore recurring regulatory hurdles for Albertsons' expansion amid a consolidating grocery sector facing online and big-box pressures.

Pricing Practices and Consumer Complaints

Albertsons has faced recurring consumer complaints regarding discrepancies between advertised shelf prices and amounts charged at checkout, often attributed to scanner inaccuracies and failure to honor the lowest advertised price. These issues have led to multiple investigations and settlements, particularly in , where district attorneys alleged violations of price accuracy laws on items such as meats, produce, and bakery goods. In October 2024, Albertsons, along with affiliates Vons and Safeway, agreed to pay nearly $4 million to settle a multi-county civil complaint filed by California district attorneys, resolving allegations of overcharging customers higher than the lowest posted or advertised prices and false weight advertising on packaged products. The settlement, covering stores in counties including Los Angeles, Riverside, San Diego, Sonoma, and Ventura, required implementation of a "Price Accuracy Program" to audit pricing systems, train employees, and handle consumer complaints, while prohibiting false or misleading price statements. No admission of wrongdoing was made, but the agreement addressed systemic failures in ensuring checkout prices matched shelf tags. Earlier precedents include a 2003 settlement where Albertsons paid $1.85 million to resolve accusations of computer scanner overcharges in , stemming from a state investigation that found frequent mismatches between shelf and scanned prices across thousands of items. Consumer reports and class-action suits have also highlighted similar patterns, such as a pandemic-era claiming excessive hikes on essentials like eggs and sanitizers, though outcomes emphasized operational errors over intentional gouging. In November 2024, U.S. Senators and urged federal authorities to probe Albertsons for potential mislabeling of weighed items, alleging overcharges by classifying products as "pre-packaged" rather than "random weight," which could inflate prices without accurate scaling. These complaints persist amid broader scrutiny of grocery pricing amid , with some analyses linking Albertsons' practices to competitive pressures rather than deliberate , though empirical audits consistently reveal error rates exceeding legal tolerances.

Labor Relations and Regulatory Challenges

Albertsons Companies' employees are predominantly represented by the (UFCW) union across its store banners, including , , and , with agreements covering wages, benefits, and working conditions. In 2025, contract negotiations escalated into strike authorizations by UFCW members in multiple states, including , , , and , amid disputes over staffing shortages, healthcare costs, and pension contributions. Workers alleged unfair labor practices, such as management surveillance of union activities, interrogation of employees, and threats against organizing efforts, prompting votes to authorize strikes as leverage in bargaining. These labor actions were largely averted through tentative agreements ratified later in 2025, which included substantial wage hikes—such as 15% in the first year for some locals—enhanced healthcare funding, and establishment of new pension plans to replace underfunded prior arrangements. For example, UFCW Local 8 members in approved a contract extending to 2029 with annual 3% raises and provisions, while locals secured three-year pacts with similar improvements following ratification votes. In , a four-year deal with Smith's (an Albertsons banner) resolved tensions by addressing allegations filed with the (NLRB), demonstrating how union pressure yielded concessions without widespread walkouts. Regulatory scrutiny has centered on compliance with federal labor and safety laws. The NLRB has processed multiple charges against Albertsons since 2023, including allegations of coercive statements threatening benefits and improper interference in union elections, though the General Counsel declined to pursue complaints in cases lacking sufficient evidence, such as purported with rival during strikes. OSHA has issued citations for workplace hazards, notably a 2023 violation at an Albertsons facility for inadequate procedures to control hazardous energy during maintenance, exposing workers to risks of unintended machine startups. The U.S. Department of Labor has also investigated wage and hour issues, including a 2022 settlement involving backpay for drivers operating commercial vehicles exceeding 10,001 pounds gross weight, ensuring adherence to and safety regulations under the Fair Labor Standards Act. These challenges reflect broader industry pressures on grocery chains to balance cost controls with regulatory mandates amid rising operational expenses.

References

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