Albertsons is like Kroger, operating a vast network of grocery stores, pharmacies, and fuel centers under many regional banners across the U.S.

Think of it as the grocery and pharmacy side of a Walmart Supercenter, but as a dedicated, standalone company.

• Grocery Products: Albertsons sells a wide variety of food, beverages, and other consumable household items.
• General Merchandise: The company offers non-food items, including household goods, seasonal products, and electronics.
• Health and Beauty Care Products: A range of personal care, cosmetic, and over-the-counter health items are available in stores.
• Pharmacy Services: In-store pharmacies provide prescription filling, immunizations, and various health-related services.
• Fuel: Gasoline and diesel are offered at convenience stores adjacent to many of its grocery locations.
• Manufactured Food Products: Albertsons processes and produces food items specifically for sale within its network of stores.
• Digital Platforms (eCommerce): The company provides online ordering, home delivery, and in-store pickup options for its products.

Albertsons Companies (ACI) primarily sells directly to individual consumers through its extensive network of food and drug retail stores and digital platforms. Therefore, its major customers are individuals and households.

The company serves a broad range of individual customers, which can be categorized as:

• Everyday Shoppers/Households: This largest category includes individuals and families purchasing groceries, household essentials, and general merchandise for their daily needs. This group values the convenience, variety, and pricing offered across Albertsons' various banners.
• Health and Wellness-Focused Consumers: Customers who specifically utilize Albertsons' pharmacies for prescription and over-the-counter medications, as well as those seeking health and beauty care products, organic produce, natural foods, and other wellness-oriented items.
• Convenience-Oriented Customers: Individuals who benefit from the integrated services offered, such as in-store coffee shops, adjacent fuel centers, and digital platforms for online ordering, delivery, and curbside pickup, prioritizing time-saving and accessibility in their shopping experience.

Susan Morris, Chief Executive Officer

Susan Morris assumed the role of CEO of Albertsons Companies in May 2025, bringing nearly 40 years of experience in the retail grocery industry. She began her career at an Albertsons store in the Denver market and rose through various leadership positions within the company, including Executive Vice President and Chief Operations Officer from 2018 to 2025. Morris also serves on the Board of Directors of IDACORP Inc and the Food Marketing Institute.

Sharon McCollam, President and Chief Financial Officer

Sharon McCollam joined Albertsons Companies as President and Chief Financial Officer in September 2021. She is recognized for her transformative leadership in the retail industry, notably serving as Executive Vice President, Chief Administrative, and Chief Financial Officer of Best Buy Co., Inc. from December 2012 to June 2016, where she was a key figure in the company's "Renew Blue" transformation. Prior to Best Buy, McCollam spent 12 years at Williams-Sonoma Inc., holding roles including Executive Vice President, Chief Operating, and Chief Financial Officer. Her background also includes serving as CFO of Dole Fresh Vegetables, Inc. McCollam has a history of board service for various public and private companies, including Signet Jewelers, Stitch Fix, Chewy, Inc., and Whole Foods Market.

Anuj Dhanda, EVP, Chief Technology & Transformation Officer

Anuj Dhanda has been the Executive Vice President and Chief Technology & Transformation Officer at Albertsons Companies since December 2015. He brings extensive expertise in business transformation, digital marketing and commerce, systems modernization, and data security. Before joining Albertsons, he served as Chief Information Officer at Giant Eagle and Executive Vice President and Chief Information Officer at PNC Financial Services Group. Dhanda began his career as a consultant with KPMG in Bahrain in 1984.

Evan Rainwater, Executive Vice President of Supply Chain, Manufacturing, and Strategic Sourcing

Evan Rainwater serves as the Executive Vice President of Supply Chain, Manufacturing, and Strategic Sourcing at Albertsons Companies, a position he has held since March 2020, having joined Albertsons in March 2015. In this role, he oversees the company's manufacturing plants, distribution centers, and procurement. Prior to Albertsons, Rainwater spent nearly 15 years at Safeway in various leadership capacities, including Group Vice President of Logistics and Vice President of Distribution. His experience also includes senior management roles in manufacturing and logistics at Winn-Dixie, Rubbermaid, and Mobil Oil.

Thomas Moriarty, Executive Vice President, M&A and Corporate Affairs

Thomas Moriarty holds the position of Executive Vice President, M&A and Corporate Affairs at Albertsons Companies.

The **highly competitive nature of the grocery landscape** is a primary risk for Albertsons. The company competes with major retailers such as Walmart, Target, Costco, and Kroger, as well as rapidly expanding e-commerce giants like Amazon. This intense competition puts pressure on pricing, product quality, selection, and overall customer experience, which can lead to market share erosion and impact top-line growth.

Albertsons also faces significant **margin pressures and rising operating costs**. The grocery business is inherently low-margin, and Albertsons' operating profitability has lagged behind some of its largest competitors. The company is susceptible to cost inflation for food, fuel, and other commodities, which can reduce gross profit margins if these costs cannot be fully passed on to consumers. Additionally, rising labor costs, influenced by numerous unionized employees, collective bargaining agreements, and increases in federal, state, and local minimum wages, pose a continuous challenge to profitability.

A third key risk is the **dependence on pharmacy sales for growth amidst industry-wide challenges**. While pharmacy sales have been a growth driver for Albertsons, this segment is subject to significant headwinds. The impact of the Inflation Reduction Act's Medicare Drug Price Negotiation Program and slowing sales of GLP-1 therapies are expected to affect pharmacy sales and potentially pressure margins due to reduced rebates.

The accelerating shift of consumer preferences towards online grocery shopping and home delivery, particularly as driven by technologically advanced platforms and integrated ecosystems from competitors like Amazon (via Amazon Fresh and Whole Foods) and Walmart, poses a clear emerging threat. These platforms leverage extensive logistics networks and often offer greater convenience, subscription benefits, and competitive pricing, which can erode the market share and foot traffic of traditional brick-and-mortar grocery stores like Albertsons.

For Albertsons Companies (symbol: ACI), the addressable markets for their main products and services in the United States are as follows:

• Grocery Products: The USA Grocery & Food Market is valued at USD 3 trillion.
• General Merchandise: U.S. General Merchandise Store Sales were approximately $932.64 billion annually, based on monthly sales of $77.72 billion as of January 2026.
• Health and Beauty Care Products: The United States Beauty And Personal Care Products Market size was valued at USD 136.03 billion in 2024.
• Pharmacy: The U.S. pharmacy market size was estimated at USD 732.44 billion in 2024.
• Fuel: Total fuels sales for the U.S. convenience store industry, which sells an estimated 80% of the fuel purchased in the country, were $532.2 billion in 2023.

Expected Drivers of Future Revenue Growth for Albertsons Companies (ACI)

Over the next 2-3 years, Albertsons Companies (ACI) is expected to drive revenue growth through several key strategic initiatives:

• Expansion of Digital and E-commerce Capabilities & Enhanced Customer Loyalty: Albertsons is significantly investing in its digital and e-commerce platforms, including Drive Up & Go and home delivery services, which have shown substantial growth in online sales. The company aims to deepen customer relationships and increase engagement through its "Albertsons for U" loyalty program, which leverages customer data for personalized offers and retention, thereby contributing to higher sales frequency and basket sizes. E-commerce sales grew by 23% in Q2 2025 and 24% in Q4 2025, with overall digital sales increasing by 21% in Q3 2025. Loyalty program membership also saw a 12% increase, reaching 49.8 million members in Q3 2025.
• Growth in Pharmacy and Health Services: The expansion of pharmacy offerings and health services is a consistent driver of revenue. Albertsons has reported significant growth in pharmacy revenue, with an 18% increase in both Q4 2025 and Q3 2025, fueled by higher script volumes, new medications, and value-added services like immunizations.
• Strategic Store Openings and Remodels: Albertsons is focused on optimizing its physical footprint through strategic new store openings in high-growth or underserved markets and extensive store remodels. These initiatives are designed to enhance the customer experience and improve operational efficiency, which in turn supports identical sales growth. The company made ongoing investments in its store base during fiscal year 2023 and beyond, including 11 new store openings in FY24 and 23 remodels in Q3 2025.
• Increased Penetration of Owned Brands (Private Label): The company plans to heavily invest in its owned brands (private label products) to boost customer loyalty and offer value. Albertsons aims to drive the penetration of its private label brands from 25% to 30% over time, which is expected to reinforce its competitive advantage and contribute to long-term profitability.
• Technology-Led Transformation and AI Integration: Albertsons is making purposeful investments in technology and artificial intelligence (AI) to enhance its customer value proposition, improve operational efficiency, and accelerate decision-making across the enterprise. This includes leveraging AI for demand forecasting, computer vision, and an AI shopping assistant, all of which are anticipated to lead to smarter merchandising, better customer experiences, and ultimately, revenue growth.

Share Repurchases

• In October 2025, Albertsons announced a $750 million accelerated share repurchase (ASR) agreement and increased its total share repurchase authorization to $2.75 billion, with the ASR expected to be completed by the first quarter of 2026.
• During the first quarter of fiscal 2025 (ending June 2025), the company completed $315 million in share repurchases, with approximately $1.5 billion remaining under a multiyear $2 billion share repurchase authorization.
• Albertsons launched a buyback program of up to $2 billion in December 2024, and in the fourth quarter of fiscal 2024, repurchased 4.1 million shares for $82.5 million.

Capital Expenditures

• For fiscal year 2025, capital expenditures are projected to be in the range of $1.8 billion to $1.9 billion, with a focus on accelerating investments in digital and automation.
• During the first 28 weeks of fiscal 2025, capital expenditures totaled $950.5 million, primarily allocated to 51 store remodels, opening three new stores, and continued investments in digital and technology platforms.
• In fiscal 2023, capital expenditures amounted to $2.0313 billion, which included completing 150 remodels, opening six new stores, and ongoing investments in digital and technology platforms.