Earnings
Home›Earnings›Previews›Albertsons Q1 results show weaker grocery sales despit…
Albertsons Q1 results show weaker grocery sales despite pharmacy gains
Digital sales rose 13% as management cited softness in lower-income customers and a 100 basis point IRA headwind to identical sales in Q1.
Albertsons Companies said its Q1 results reflected declining identical sales, down 0.8%, as gains in pharmacy and digital growth were not enough to offset broader unit pressure in the core grocery business, according to the company’s Q1 2026 earnings call summary by Yahoo Finance.
Management also pointed to pronounced weakness in the lower-income customer segment, citing softness in transaction units and average basket size. The retailer attributed additional pressure to policy and product mix factors, including a 100 basis point headwind from the Inflation Reduction Act and impacts from a shift toward generic medications, including within pharmacy.
To address performance, Albertsons is accelerating its ACI Edge initiative, moving from 11 divisions to 4 regions to simplify execution. The company said digital sales grew 13%, with penetration reaching 10.5%, and that profitability was supported by improved order density and fulfillment productivity.
Looking ahead, the summary says fiscal 2026 guidance assumes a continued soft unit environment and possible affordability pressures tied to expected supplier cost increases in the second half. Albertsons expects the ACI Edge model to deliver about $200 million in incremental annual run-rate benefits, with most of that realized in fiscal 2027, while planning $1.9 billion to $2 billion in capital expenditures and noting CFO Sharon McCollam’s retirement search for a successor.