BOISE, Idaho, August 16, 2026, 11:38 MDT – Albertsons is shuttering just 0.5% of its stores while the company sees margins tighten.
- The 12 planned closures set for 2026 represent about 0.5% of Albertsons’ most recent store count.
- Adjusted earnings came in below forecasts, as identical sales in the first quarter declined by 0.8%.
- The main tool for management is a $200 million cost program, with most of the impact expected in fiscal 2027.
Albertsons Companies NYSE:ACI plans to shut down nearly a dozen stores in the current year. While the number may seem substantial, it accounts for just around 0.5% of its most recent total of 2,244 stores.
The limited share is significant for investors. While closing underperforming stores may eliminate weaker sites, it will not by itself resolve declining grocery sales and pressure on profit margins. The bigger challenge is if Albertsons can reduce expenses without driving away budget-conscious customers.
Albertsons ended Friday’s session at $12.42 per share, marking a 2.4% gain over the week. Based on the company’s most recent share count, the grocer’s market value is approximately $6.1 billion. U.S. financial markets were not open on Sunday.
Recent reporting highlights announced or finalized shutdowns among Albertsons, Safeway, Vons, ACME, and Randalls stores. The company called these actions standard portfolio management. It maintains its forecast for net store growth in calendar 2026.
This move comes after a significant restructuring. Albertsons shut 35 stores in fiscal 2025, compared to 10 closures the previous year. The company opened nine new stores, bringing the net decrease in locations last year to 26.
| Fiscal year | Stores opened | Stores closed | Net change | Year-end stores |
|---|---|---|---|---|
| 2023 | 6 | 8 | -2 | 2,269 |
| 2024 | 11 | 10 | +1 | 2,270 |
| 2025 | 9 | 35 | -26 | 2,244 |
| 2026 announced to date | Undisclosed | Approximately 12 | Initial estimate | Roughly 0.5% of current base |
Pressure on earnings extends beyond the real estate segment. Revenue rose slightly in the first quarter, but same-store sales dropped. Gross margin further decreased as the company spent more on pricing and loyalty initiatives.
| Fiscal Q1 2026 measure | Result | Comparison |
|---|---|---|
| Revenue | $24.94 billion | Up roughly 0.2% from prior year |
| Identical sales | -0.8% | Core demand declined |
| Adjusted EPS | $0.42 | $0.55 for the same period last year |
| Adjusted EBITDA | $1.01 billion | Decreased from a year ago |
| Gross margin | 26.6% | Fell 23 basis points, not counting fuel and LIFO |
| Digital sales | +13% | Total e-commerce operated profitably |
Chief Executive Susan Morris stated, “While pharmacy and digital delivered strong growth, their performance was not enough to offset broader pressures in our core business.” Albertsons first-quarter release
The ACI Edge initiative is management’s primary tool for investors. Albertsons is merging 11 divisions into four regional units and anticipates approximately $200 million in yearly savings, mainly starting in fiscal 2027.
The stock matched Walmart NASDAQ:WMT last week, outperforming most other grocery stocks. Kroger NYSE:KR saw just a slight gain. Costco Wholesale NASDAQ:COST posted a small increase, and Sprouts Farmers Market NASDAQ:SFM declined.
| Company | August 10 close | August 14 close | Weekly change |
|---|---|---|---|
| Albertsons NYSE:ACI | $12.13 | $12.42 | up 2.4% |
| Walmart NASDAQ:WMT | $112.66 | $115.27 | up 2.3% |
| Costco NASDAQ:COST | $952.75 | $961.10 | up 0.9% |
| Kroger NYSE:KR | $56.48 | $56.69 | up 0.4% |
| Sprouts NASDAQ:SFM | $85.33 | $82.50 | down 3.3% |
Recent analyst revisions highlight the ongoing caution surrounding the rebound. Post-earnings price targets are set between $11 and $16, representing a potential decline of 11% to an increase of 29% from Friday’s closing price.
| Analyst and firm | Date | Recommendation | Target | Move from $12.42 |
|---|---|---|---|---|
| Mark Carden, UBS Group NYSE:UBS | July 28 | Neutral | $12 | -3.4% |
| Paul Lejuez, Citigroup NYSE:C | July 27 | Neutral | $11 | -11.4% |
| Thomas Palmer, JPMorgan Chase NYSE:JPM | July 24 | Overweight | $14 | +12.7% |
| Leah Jordan, Goldman Sachs NYSE:GS | July 24 | Buy | $16 | +28.8% |
| Steven Shemesh, Royal Bank of Canada NYSE:RY | July 24 | Outperform | $13 | +4.7% |
One offset has come from insiders. On July 28, Morris acquired 39,409 shares at an average price of about $11.40 per share, marking her initial purchase in the open market. Additional executives have also purchased stock.
Albertsons projects fiscal 2026 identical sales to decrease by between 1.5% and 0.5%. The company anticipates adjusted earnings of $1.75 to $1.85 per share, while adjusted EBITDA is guided to a range of $3.55 billion to $3.63 billion.
Risks include prolonged food deflation, increased price competition, or reduced customer traffic, any of which could offset savings from closures. Delays in execution could postpone ACI Edge advantages past fiscal 2027.
The upcoming week is expected to shed light on the potential for additional closures. Investors are advised to pay closer attention to unit volumes, gross margin, and the speed of regional consolidation rather than simply the number of stores. The sustainability of the recent rebound will hinge on those metrics.
