BOISE, Idaho – April 15, 2025 – Albertsons Companies, Inc. (NYSE: ACI) has released its fourth-quarter and full-year results for fiscal 2024, offering a glimpse into the performance of one of America’s largest grocery retailers during a year overshadowed by the failed merger with Kroger.
For the fourth quarter, Albertsons reported a dip in net income compared to the same period in the previous year. Annual net income fell to just under $1.3 billion, with adjusted net income and EBITDA also lower year-over-year. Despite a challenging landscape, Albertsons showed resilience in several areas. Identical store sales grew modestly at 3% for the full year, and digital sales climbed by 22%, reinforcing the company’s continued commitment to omnichannel growth. Membership in its loyalty programme also increased significantly, reaching nearly 40 million members.
Throughout fiscal 2024, Albertsons focused on its “Customers for Life” strategy, completing 150 store remodels and opening six new stores. However, the company also faced several pressures, including higher costs from wage increases and reduced consumer spending as government assistance tapered off. The shift toward lower-margin services, such as pharmacy and digital fulfilment, has also weighed on profitability.
The long-planned $24.6 billion merger with Kroger, which was ultimately blocked by the U.S. Federal Trade Commission in late 2024, had a significant impact. Analysts and investors alike are now questioning how the uncertainty and eventual legal dispute with Kroger may have influenced operations and decision-making during the fiscal year. The merger’s collapse has left Albertsons in a complex position: no longer merging, yet having made operational and strategic plans based on a future that now won’t materialise. Albertsons has since taken legal action against Kroger, claiming breach of contract.
Adding to this pivotal moment, CEO Vivek Sankaran announced his retirement, effective May 1, 2025. He will be succeeded by Chief Operating Officer Susan Morris, a veteran of the grocery industry with a strong background in operations and customer engagement.
Looking ahead, Albertsons has issued a softer profit outlook for 2025, with projected adjusted earnings per share well below Wall Street expectations. As the company enters a new era of leadership and reevaluates its strategic roadmap, investors and industry watchers alike will be watching closely to see whether Albertsons can redefine its path forward in a fiercely competitive market.
In a year that could have reshaped the grocery landscape, Albertsons now stands at a crossroads, navigating the aftermath of a failed mega-merger while trying to deliver value to consumers and shareholders alike.
