Albertsons Laying Off Corporate, Divisional Support Staff
In the aftermath of its failed merger with The Kroger Co., Albertsons Cos. will make reductions in its corporate and divisional support staff, according to a report from Idaho News 6. Albertsons confirmed the move to the news outlet, with a spokesperson saying the layoffs will help the company “compete in a rapidly changing market."
While store-level employees will not be affected by the layoffs, Albertsons is not sharing how many other associates will be let go. Severance packages will be offered, along with "extended benefits, career support services, and additional resources during this transition," the spokesperson confirmed.
[RELATED: Digging Into Albertsons’ Lawsuit Against Kroger]
Continued the spokesperson: "We look to realize ongoing benefits of increased productivity, continuing to expand our capabilities offshore is just one of the steps we are taking to accelerate our Customers for Life strategy."
Despite the layoffs, Albertsons recently posted solid Q3 financial results, with net sales and other revenue increasing 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.”
As of Nov. 30, Albertsons Cos. operated 2,273 retail food and drug stores with 1,732 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Boise, Idaho-based company operates stores across 34 states and the District of Columbia under more than 20 well-known banners. Albertsons is No. 9 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
