Albertsons' digital sales grew 28% last year
- Albertsons' digital sales increased by 28% last year.
- Overall, net sales at Albertsons during its fourth quarter grew to $18.3 billion, up from $17.4 billion in the same quarter last year.
- Albertsons is in the process of a yet-to-be-approved merger with Kroger.
Albertsons Companies’ digital sales increased by 16% in the fourth quarter of 2022 and by 28% across the entire fiscal year, according to an April 11 release covering the grocer’s 2022 fourth-quarter earnings, which ended February 25. The grocer attributed the 5.6% increase in identical sales seen during the quarter to retail price inflation, growth in pharmacy and the increase in its digital business. The grocer also increased membership in its loyalty program during the fourth quarter by 15% to more than 34 million members, the company said.
Albertsons did $18.3 billion in net sales during the quarter, up from $17.4 billion in sales during the fourth quarter of 2021. The grocer reported approximately $78 billion in net sales across the entirety of last year, up from approximately $72 billion in net sales during its 2021 fiscal year.
Capital expenditures for 2022 totaled around $2.2 billion in 2022, which the grocer said largely included investments in its digital and technology platforms in addition to opening five new stores and remodeling 173 existing locations. Digital operations and e-commerce continue to increase in importance for grocers, as shoppers look for convenience and value following the explosive growth of the channel during the COVID-19 pandemic.
"These results, and our results for fiscal 2022 overall, were fueled by the rollout of our ‘Customers for Life’ transformation strategy, which places the customer at the center of everything we do, with the ultimate goal of supporting them every day, every week and for a lifetime,” said Vivek Sankaran, Albertsons’ CEO, in the release.
“Against this backdrop, throughout the year, we invested in the following initiatives: digitally connecting and engaging our customers through a frictionless omnichannel experience, differentiating our store experience, enhancing what we offer and where we offer it, modernizing our operational capabilities, and further embedding ESG throughout our operations,” he added.
Albertsons is in the process of a yet-to-be-approved merger with Kroger, the largest supermarket operator in the U.S. As part of the proposed $24.6 billion merger, Kroger says it planned to divest some 250-300 stores to alleviate the antitrust concerns of federal regulators. The merger has also drawn concerns from workers. Earlier this month, a group of organizations that oppose the merger and have joined together as Stop the Merger, said thousands of Kroger and Albertsons represented by the United Food and Commercial Workers (UFCW) union would hold demonstrations in front of Kroger and Albertsons stores in April.
In total, Albertsons operates more than 2,200 stores across 34 states under several notable banners that include its namesake Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lover's Market.