Albertsons' ID Sales Grow for 3rd Consecutive Quarter While Ecommerce Soars
The Albertsons Cos. reported strong performance during the second quarter of its fiscal 2018, with comparable sales increasing for the third consecutive quarter and impressive growth on both the ecommerce and private label sides.
During the period, which ended Sept. 8, sales and other revenue grew 1.4 percent to $14 billion, driven by $140.3 million growth in fuel sales and a 1 percent rise in identical sales. Comps were partly offset, however, by a reduction in sales related to the closure of 30 stores during the first two quarters of fiscal 2018.
Two key highlights include ecommerce sales more than doubling in Q2, growing 113 percent, and sales penetration of Albertsons' private labels growing 44 basis points to 25 percent. Also noteworthy: Albertsons has completed store conversions to Safeway's IT systems.
"We are energized and enthusiastic about our company and our ability to generate free cash flow and deliver our balance sheet," said Jim Donald, Albertsons CEO. "The team continues to innovate through our digital engagement with customers in both the four-wall and no-wall environment, through our continued expansion of natural and organic own-brands offerings, and through the automation of our distribution centers, which we believe will deliver strong returns going forward."
He added: "We are also thrilled to have completed our store systems conversions related to the Safeway integration, which will allow our operators to relentlessly focus on running great stores."
Turning to its outlook for the fiscal year, Albertsons said that it expects identical sales to range from 1 percent to 1.3 percent and to spend approximately $1.4 billion in capital expenditures.
Boise, Idaho-based Albertsons Cos. operates stores across 35 states and the District of Columbia under 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal kit company Plated. It is No. 3 on Progressive Grocer's 2018 Super 50 list of the top grocers in the United States.