Albertsons is reorganizing its supermarket business and investing in lower prices after cautious consumers weakened grocery sales, but the company’s latest announcement does not include a new nationwide store-closure list.
The grocer will replace 11 operating divisions with four regional units while centralizing pricing, promotions, merchandising and supplier relationships. The changes affect a company with more than 2,200 stores under banners including Albertsons, Safeway, Vons, Jewel-Osco, Acme, Shaw’s, Tom Thumb, Randalls and Pavilions.
Is Albertsons closing stores in 2026?
Albertsons has closed selected underperforming supermarkets and eliminated jobs during its wider business reset. However, creating four regions does not automatically mean another round of closures.
No new nationwide closure list or companywide layoff total was announced with the July restructuring plan. Customers should rely on official notices from individual stores rather than assume every Albertsons-owned location is affected.
Earlier actions included closures in Texas and other markets. More background is available in this report on Albertsons store closures and job reductions in 2026.
Sales and profit fell during the quarter
First-quarter identical sales declined 0.8%. This measure compares sales at established stores over a consistent period and helps show the underlying performance of a retail business.
Quarterly net income fell to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, a year earlier. Revenue was approximately $24.94 billion.
Digital and pharmacy operations continued to grow, but that strength was insufficient to offset weakness in the larger core grocery business.
Albertsons cuts its fiscal 2026 forecast
Albertsons now expects full-year identical sales to decline between 0.5% and 1.5%. Its previous guidance ranged from flat sales to growth of 1%.
Adjusted earnings are forecast at $1.75 to $1.85 per share, down from the earlier projection of $2.22 to $2.32. Adjusted EBITDA guidance was reduced to $3.55 billion–$3.625 billion from $3.85 billion–$3.925 billion.
Fuel and packaging expenses are also expected to increase. Higher gasoline prices raise operating costs while leaving households with less money for grocery purchases.
Why Albertsons stock plunged
Albertsons shares fell more than 20% at one stage and reached a five-year low. Investors reacted to weaker sales, lower profit guidance, higher planned spending and uncertainty surrounding the reorganization.
The pressure spread across the grocery sector. Kroger shares fell approximately 4%, while Sprouts Farmers Market declined about 5%, reflecting concern that cautious spending and aggressive price competition could affect other supermarkets.
Why shoppers are buying less
Albertsons said pressure is particularly visible among middle- and lower-income customers. These households are purchasing fewer items, selecting cheaper private-label products and choosing value or bulk packages.
Walmart, Aldi, Costco and other value-focused retailers present a growing competitive threat. Walmart’s grocery strength and online expansion were visible in its earlier fiscal 2026 earnings and e-commerce results.
Supermarkets generally operate with narrow margins, so a modest reduction in store traffic or the number of products sold can have a significant effect on profit.
What the four-region restructuring means
Albertsons wants the four-region model to simplify management, improve accountability and help the company respond faster when stores or markets underperform.
Centralizing pricing, promotions and supplier negotiations could produce more coordinated offers and give Albertsons greater purchasing power. The company has not disclosed the complete boundaries of the four regions or confirmed how many management jobs could be affected.
No companywide rebranding was announced. Familiar names such as Safeway, Vons, Jewel-Osco and Acme are expected to remain.
Lower prices and digital investment
Albertsons has reduced prices on hundreds of products and plans to invest further in customer value, private labels, e-commerce and personalized loyalty promotions.
Shoppers may see more digital coupons, targeted rewards and market-specific discounts. The company has not announced a universal price reduction, so savings will vary by location and product.
These investments could pressure near-term earnings, but management believes they can improve traffic, unit sales and loyalty over time.
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CFO Sharon McCollam will retire
President and Chief Financial Officer Sharon McCollam plans to retire once a successor is selected. According to an official SEC filing, she will remain as an adviser through February 27, 2027, to assist with the transition.
What customers and employees should watch
Customers should monitor local prices, loyalty offers, private-label selection and notices at individual stores. No broad reduction to pharmacy, pickup or delivery services was announced.
Employees should watch for regional leadership appointments and official notices affecting specific positions. Until Albertsons identifies additional locations, the restructuring should not be presented as confirmation of a new nationwide wave of Albertsons, Safeway or Vons closures.
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