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04/26/2021

Albertsons Posts 282% Digital Growth

Digital sales at Albertsons Cos. soared 282% during the last three months of 2020, marking the fourth consecutive quarter of more than 200% growth, Progressive Grocer reported.
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The figure was reported in Albertsons end-of-year earnings and follows the grocer’s recently announced partnership with Google to make omnichannel easier and more convenient for shoppers.

The eye-popping growth reveals the extreme swing of consumers to digital channels during the Covid-19 pandemic. While retailers saw a boom to business, they also had to scramble to ramp up omnichannel and digital delivery solutions and heavily invest in boosting digital capabilities to keep up with demand. 

 

Exec summary

For example, Albertsons spent $1.63 billion in capital expenditures, including the acceleration of digital and productivity initiatives and remodeling 409 stores. The retailer, based in Boise, Idaho, operates 2,252 stores, including 1,725 pharmacies, 398 associated fuel centers, 22 dedicated distribution centers and 20 manufacturing facilities.

In addition to huge digital growth, Albertsons reported same-store sales growth of 11.8% during the fourth quarter of 2021. Looking ahead, the retailer expects same-store sales to drop between 6% and 7.5% in 2021, though sales are anticipated to increase on a two-year stacked basis. Sales and other revenue rose from $15.4 billion in the fourth quarter of 2019 to $15.8 billion in the same three-month period in 2020.

“As a result of our strong execution, we delivered record full-year results, drove meaningful market share gains and are well positioned for continued success and strong performance in fiscal 2021,” said Albertsons President and CEO Vivek Sankaran. “We have made substantial progress against our strategic priorities, and are still in the early innings of our transformation journey. Looking ahead, we remain committed to further strengthening our relationships with our customers, offering a superior shopping experience and generating value for all stakeholders."

In the fourth quarter, Albertsons reported a net loss of $144.2 million or 37 cents per share. Adjusted net income was $1,891.4 million, or $3.24 per share, during fiscal 2020 compared to $612.1 million, or $1.04 per share, during fiscal 2019, PG reported. 

See the full story at Progressive Grocer.