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Albertsons reports year-over-year financial improvement

An Albertsons express convenience store at Parkcenter Boulevard and Apple Street in Boise. The huge company is rolling out new products and focusing on delivery, organic and e-commerce options as it works to stay ahead of  changing consumer trends. File photo.

The Boise-based Albertsons Companies, Inc. on July 16 reported improved results for its fiscal first quarter.

Albertsons posted a quarterly loss of $17.7 million for the 16 weeks ended June 16, compared with a loss of $204.9 million a year earlier. Revenue rose 1 percent to $18.7 billion, driven by an increase in fuel sales and a .2 percent rise in identical sales, the company said in a release.

The company is preparing to merge with a portion of the drugstore chain Rite Aid Corp. later this year.

Albertsons said its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 5.7 percent to $815.8 million, or 4.4 percent of sales, reflecting improved gross profit and the company’s cost-reduction initiatives.

Company officials said the Rite Aid deal will result in continued sales growth of $1.5 percent and adjusted Ebitda of $2.7 billion for the fiscal year.

Albertsons employs nearly 273,000 people through its various U.S. food and drug brands. According to company officials, Albertsons operates 2,300 retail food and drug stores with 1,762 pharmacies, 397 associated fuel centers, 23 dedicated distribution centers, five Plated fulfillment centers for the packaged home dinner preparation market, and 20 manufacturing facilities. Its brands include Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Sav-On, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Amigos, Haggen and United Express.

Albertsons is constantly working to adjust to changing consumer preferences, according to Supermarket News. Supermarket News said Albertsons will start selling nearly 1,400 new products under its own brand this year, nearly twice as many as it introduced in 2017.

“We continue to roll out unique options for our customers as we strive to differentiate through our best in class Own Brands and rapidly expanding eCommerce offerings,” said Bob Miller, chairman and CEO of the company, in a prepared statement.

This story was edited at 8 p.m. July 16 to correct the rise in identical sales to .2 percent.

 

 

 

 

About Anne Wallace Allen

Anne Wallace Allen is the editor of the Idaho Business Review.