BOISE, Idaho, August 17, 2026, 12:35 MDT — Albertsons said it will close 0.5% of its stores following a 64% decrease in profit.
- Approximately 12 closures represent nearly 0.5% of the network at the end of the quarter.
- Net income for the first quarter dropped 64% even as revenue remained almost unchanged.
- Albertsons stock dropped 2.1%, with consensus upside at 9.9%.
Shares of Albertsons Companies, Inc. NYSE:ACI slipped 2.1% on Monday following renewed reports of store closures. Around 12 stores are said to be shutting, which represents just 0.5% of the retailer’s total locations. However, a more significant concern for investors was a 64% decline in first-quarter profit.
The scale of the footprint reductions appears more tactical than fundamental. Albertsons anticipates a net rise in store numbers for the current fiscal year. Margin strain and softer outlook have a significantly greater impact on valuation.
The 2026 list includes Albertsons, Safeway, Acme, Vons, Randalls and Balducci’s. Of the 12 locations mentioned, 11 have already shut down, and one more is set to close in August. The company has yet to announce a full-year closure goal.
Albertsons stated that its strategy involves launching new stores in areas with strong, sustained demand, while also closing some locations when necessary and working to relocate impacted employees.
| Store-footprint measure | Count | Investor reading |
|---|---|---|
| Stores at quarter start | 2,244 | Broad U.S. presence |
| Acquired in Q1 | 2 | Partially compensates for closures |
| Opened in Q1 | 4 | Expansion remains focused on growth areas |
| Closed in Q1 | 10 | Ongoing quarterly closures |
| Stores at June 20 | 2,240 | Net reduction totals four |
| Reported 2026 closure list | About 12 | Equals near 0.54% of quarter-end total |
Revenue for the first quarter increased by 0.2% to $24.94 billion. Identical sales slipped 0.8%. Net income was $84.7 million, down from $236.4 million, and adjusted EBITDA was 8.8% lower.
| Q1 measure | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Net sales | $24.94 billion | $24.88 billion | up 0.2% |
| Identical sales | -0.8% | Not comparable in table | fell |
| Digital sales | +13% | — | increase persisted |
| Net income | $84.7 million | $236.4 million | down 64.2% |
| Adjusted EBITDA | $1.013 billion | $1.111 billion | off 8.8% |
| Adjusted EBITDA margin | 4.1% | 4.5% | decreased by 40 basis points |
Chief Executive Susan Morris stated that “core grocery faced increasing pressure from softer industry unit trends and a more cautious consumer.” Morris pointed to Walmart Inc. NASDAQ:WMT and Amazon.com, Inc. NASDAQ:AMZN as key destinations drawing away lower-income customers. Reuters
In July, management reduced all key operating forecasts. The updated adjusted EBITDA midpoint stands $300 million lower than the previous midpoint. Adjusted earnings guidance at the midpoint declined by roughly 21%.
| Fiscal 2026 outlook | Current | Previous | Midpoint change |
|---|---|---|---|
| Identical sales | -1.5% to -0.5% | 0% to +1% | -1.5 percentage points |
| Adjusted EBITDA | $3.55-$3.625 billion | $3.85-$3.925 billion | -$300 million |
| Adjusted EPS | $1.75-$1.85 | $2.22-$2.32 | -20.7% |
| Capital spending | $1.9-$2.0 billion | $2.0-$2.2 billion | -$150 million |
Albertsons is addressing the matter via ACI Edge. The initiative consolidates 11 operational divisions into four regions and brings center-store merchandising, pricing, and supplier relationships under centralized management.
The market showed continued caution. Shares of Albertsons were at $12.16, close to the 12-month low of $10.86. The company’s market capitalization stood around $6.03 billion. Other grocery sector stocks also declined early in the session.
| Retailer | Price | Session move | Market value |
|---|---|---|---|
| Albertsons Companies, Inc. NYSE:ACI | $12.16 | down 2.09% | $6.03 billion |
| The Kroger Co. NYSE:KR | $56.24 | down 0.79% | $34.46 billion |
| Walmart Inc. NASDAQ:WMT | $114.14 | down 0.98% | $907.94 billion |
| Sprouts Farmers Market, Inc. NASDAQ:SFM | $80.40 | down 2.55% | $7.50 billion |
Analysts expect only modest recovery. Of fifteen ratings, four are buys, nine are holds, and two are sells. The mean price target is $13.36, implying a 9.9% potential increase. Estimates span from $10 up to $18.
| Analyst | Firm | Rating | Target | Date |
|---|---|---|---|---|
| Paul Lejuez | Citi | Hold | $11 | Aug. 3 |
| Mark Carden | UBS | Hold | $12 | July 28 |
| Leah Jordan | Goldman Sachs | Buy | $16 | July 27 |
| Bill Kirk | Roth MKM | Buy | $17 | July 24 |
| Simeon Gutman | Morgan Stanley | Sell | $10 | July 24 |
The divide is stark. Goldman Sachs projects a 31.6% rise, while Citi’s target points to a 9.5% drop. The disparity highlights uncertainty regarding price investment and margin recovery.
Key indicators for investors include new store launches, comparable sales figures, and gross margin performance. Should Albertsons finish the year with a higher store count, concerns over closures may diminish. However, the focus on profitability will persist.
Risks: Quicker reductions in pricing might postpone margin improvement. Sales could come under strain from supplier cost inflation and soft demand from lower-income consumers. Accelerated gains in execution may result if regional consolidation is completed successfully and ahead of analyst projections.
