THE FRIDAY 5: Albertsons Makes Moves Following Failed Merger; UNFI’s Strategic Realignment

Albertsons reported its Q3 earnings this week and also made several announcements.

3. Albertsons Moving Forward

News from Albertsons Cos. was in the spotlight this week, including its Q3 earnings report. Albertsons saw net sales and other revenue increase 1.2% to $18,774.5 million for the 12 weeks ended Nov. 30, driven by a 2% rise in identical sales. The company said growth in pharmacy sales helped increase identical sales. Digital sales during the quarter increased 23% during Q3, while loyalty members increased 15% to 44.3 million. 

“We delivered solid operating and financial performance in the third quarter of fiscal 2024 in an environment where the consumer remains cautious,” said Sankaran. “Investments in our Customers for Life strategy drove increased digital engagement across our platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program.”

Also in the news was the opening of Albertsons’ search for innovative independent brands through its third annual Innovation Launchpad competition. The grocer is looking specifically for products in areas including functional beverages, hydration, sober-curious beverages, low sugar or carb, protein solutions, global flavors, healthy meal solutions, and premium pet items. Three winners will receive prizes valued at more than $300,000 total, including cash and industry services. 

Separately, Albertsons Media Collective, the grocer’s retail media arm, announced a new AP and a new partnership that will make it easier for its advertisers to integrate the company’s campaign performance data into their own measurement models for analysis.

4. Expansion for Lidl, H Mart

New store news from Lidl and H Mart garnered reader attention this week. Lidl US will open a new location in New York City on Jan. 29 at Brooklyn’s Gateway Center. New York is one of three strategic markets where the grocer is focused on growing its footprint – the others being Atlanta and Washington D.C. 

H Mart, meanwhile, is unveiling two new stores this month. A location in Somerville, Mass., northwest of Boston, opened on Jan. 9, and another will cut the ribbon in Urbana, Ill., near the campus of the University of Illinois Urbana-Champaign, on Jan. 16.

5. H-E-B Takes Top Spot in Retailer Preference Index

PG readers were interested in the news that Texas-based H-E-B again took the top spot in dunnhumby’s eighth annual Retailer Preference Index (RPI). The supermarket chain has held the RPI’s top spot for three of the past four years, which dunnhumby attributed to its long-term customer value proposition. 

Market Basket (No. 2), Costco (No. 3, as well as No. 1 in the Canadian RPI), WinCo Foods (No. 4) and ALDI (No. 5) made up the rest of the top five. 

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