Albertsons Cos. (NYSE:ACI) lowered its fiscal 2026 sales and earnings outlook Thursday after reporting weaker-than-expected first-quarter results, citing softer grocery unit sales and increasingly cautious consumer spending as it accelerates investments in pricing and customer value.
The Boise, Idaho-based retailer now expects identical sales to decline between 0.5% and 1.5% for the fiscal year, compared with previous guidance calling for results ranging from flat to a 1% increase. Albertsons also lowered its adjusted earnings outlook to $1.75 to $1.85 per share, down from its prior forecast of $2.22 to $2.32. Shares fell more than 20% following the announcement, reflecting investor concerns about slowing grocery demand and increased competitive pressures.
For the first quarter, Albertsons reported net sales and other revenue of approximately $24.9 billion, up modestly from a year earlier. Identical sales declined 0.8%, while digital sales increased 13% and pharmacy continued to deliver growth, partially offsetting weaker performance in the company’s core grocery business.
President and CEO Susan Morris said the retailer continues to see strength in its digital and pharmacy businesses but acknowledged that consumers are becoming more selective in their grocery purchases.
Executives said shoppers, particularly lower-income households, continue to buy fewer items, shift toward private brands and value-focused products, and seek lower prices across competing retailers. The company said it will respond by accelerating investments in pricing, promotions and merchandising designed to strengthen its value proposition.
The revised outlook comes as Albertsons moves forward with its previously announced ACI Edge transformation strategy. Earlier this week, the company unveiled plans to consolidate its 11 operating divisions into four geographic regions while centralizing center-store merchandising, pricing and promotional decisions under a single enterprise team. Company leaders said the changes are intended to simplify operations, improve execution and better leverage Albertsons’ scale across its banners.
Albertsons also said it expects higher costs for fuel and packaging during the remainder of the fiscal year but plans to work with suppliers and absorb as much of those increases as possible rather than pass them directly to consumers.
Separately, the company announced that President and Chief Financial Officer Sharon McCollam plans to retire after a successor is appointed. She will remain with the company through the end of the fiscal year in an advisory capacity to support the leadership transition.
The lowered guidance underscores the increasingly competitive environment facing traditional supermarkets as consumers remain focused on value despite moderating inflation. Retailers across the industry continue investing in pricing, private brands and digital capabilities to retain shoppers amid ongoing competition from mass merchants, discount grocers and e-commerce operators.