BOISE, Idaho, August 17, 2026, 12:25 MDT — U.S. cash equities trading has begun.
- No fewer than 12 stores under the Albertsons banner have shut down or are expected to close in 2026.
- The pinpointed sites represent only 0.54% of the company’s total store count of 2,240.
- Net income for the first quarter dropped 64%, placing greater emphasis on pricing and execution.
Albertsons Companies, Inc. NYSE:ACI plans to shutter a minimum of 12 stores in 2026. However, the confirmed closures account for just 0.54% of its 2,240 total locations. This scale of reduction alone is insufficient to significantly impact the grocer’s earnings adjustment.
The difference is significant. Net income for the first quarter dropped 64% compared to the prior year. Albertsons additionally lowered the midpoint of its adjusted earnings outlook by roughly 21%.
The stock finished its last session at a confirmed $12.42 on August 14, marking a drop of 38% from its 52-week peak. Still, the share price was just 7.6% under the average analyst target on Wall Street.
| Footprint measure | Verified figure | Investor context |
|---|---|---|
| 2026 store closures reported or scheduled | At least 12 | Represents 0.54% of the Q1 store total |
| Store closures planned for fiscal 2025 | 35 | More than three times the fiscal 2024 figure |
| Store openings proposed for fiscal 2025 | 9 | Overall net decrease is 26 locations |
| Store total at close of Q1 2026 | 2,240 | Reflects a drop of 24 from the previous year |
| Impact on fiscal 2025 sales due to net closures | $63.4 million | Minimal compared to yearly group revenues |
| Expenses linked to closed or surplus properties | $45.1 million | Rises from $15.9 million |
Albertsons shut down 35 stores during fiscal 2025, compared to 10 closures in the previous year. The company launched nine new stores. Expenses for closures and surplus properties rose sharply, reaching $45.1 million, almost three times higher.
First-quarter results highlight that reducing store numbers is a lesser priority. Revenue inched up 0.2% to $24.94 billion. Identical sales declined 0.8%, and net income decreased to $84.7 million.
| First-quarter measure | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Net sales and other revenue | $24.94 billion | $24.88 billion | up 0.2% |
| Identical sales | -0.8% | +2.8% | down 3.6 percentage points |
| Digital sales growth | +13% | +25% | decreased by 12 points |
| Net income | $84.7 million | $236.4 million | down 64.2% |
| Adjusted EPS | $0.42 | $0.55 | down 23.6% |
| Adjusted EBITDA | $1.013 billion | $1.111 billion | down 8.8% |
| Gross margin | 26.6% | 27.1% | lower by 50 basis points |
Digital sales climbed 13%, with pharmacy operations holding steady. However, gross margin was pressured by higher delivery expenses. Selling and administrative costs also took up a greater portion of revenue.
Chief Executive Susan Morris said, “While these results did not meet our expectations, they underscored the need to move faster.” Management introduced ACI Edge following the shortfall.
ACI Edge has merged 11 operating divisions into four regional groups, and has unified its center-store merchandising operations. The restructuring goes beyond the shutdown of a dozen sites.
| Fiscal 2026 forecast | Earlier guidance | New guidance | Change at midpoint |
|---|---|---|---|
| Identical sales | 0.0% to +1.0% | -1.5% to -0.5% | -1.5 percentage points |
| Adjusted EBITDA | $3.850–$3.925 billion | $3.550–$3.625 billion | -7.7% |
| Adjusted EPS | $2.22–$2.32 | $1.75–$1.85 | -20.7% |
| Capital expenditure | $2.0–$2.2 billion | $1.9–$2.0 billion | -7.1% |
Capital deployment faces another scrutiny. Albertsons allocated $226.5 million to buy back 13.4 million shares over the quarter. The implied average per share was $16.90. The stock closed on Friday 26.5% below that level.
The board maintained a $2.0 billion share buyback authorization. Capital expenditures totaled $522.1 million, supporting the opening of four new stores, 15 store remodels and investments in digital initiatives.
Pricing pressure poses the greatest risk. Walmart Inc. NASDAQ:WMT, Amazon.com, Inc. NASDAQ:AMZN and Aldi have captured market share from traditional grocery retailers. Kroger Co. NYSE:KR plans to shut 60 stores that are not meeting performance expectations.
Analysts are split following the reduced guidance. Out of 15, four recommend buying Albertsons, nine advise holding, and two suggest selling. The average price target of $13.36 gives little room for gains compared to the most recent confirmed closing price.
| Broker | Recommendation | Price target | Date |
|---|---|---|---|
| Citi | Hold | $11 | August 3, 2026 |
| UBS | Hold | $12 | July 28, 2026 |
| Goldman Sachs | Buy | $16 | July 27, 2026 |
| Roth MKM | Buy | $17 | July 24, 2026 |
| Morgan Stanley | Sell | $10 | July 24, 2026 |
Risks: The pace of store closures could increase beyond those currently specified. Greater investment in pricing has the potential to pressure margins ahead of anticipated productivity gains. Conversely, quicker execution at the regional level or improved digital performance could render present guidance overly cautious.
Investors can see the number of closures, but that alone does not determine the outcome. The main challenge is for ACI Edge to improve traffic and margins. As long as that remains unresolved, a 0.5% reduction in footprint does little to balance a 64% drop in profit.
