Albertsons Sees Shuffling of Board Members
Albertsons Cos. Inc. has revealed that effective Oct. 24, the board of directors has elected Jim Donald as the sole independent chair and appointed Stephen Feinberg to the board after Chan Galbato stepped down from his co-chairman position on Oct. 22.
CEO Vivek Sankaran noted: “Jim will continue to provide strong leadership as chair of the board. I am excited to welcome Steve to the board, and I thank Chan for his significant contributions.”
Donald has been co-chairman since April 2019. Prior to that, he had been Albertsons’ president and CEO since September 2018. Throughout his career, Donald held roles at Starbucks Corp., Haggen Food & Pharmacy, Pathmark Stores Inc., Safeway Inc., and Walmart Inc. He began his grocery and retail career in 1971 with Publix Super Markets Inc.
Feinberg is the co-CEO of New York-based Cerberus Capital Management, LP (CCM), Albertsons’ investor. Feinberg has led the investment adviser since co-founding it in 1992. CCM designated Feinberg to the Albertsons board in accordance with the stockholders agreement dated June 25, 2020. Feinberg is appointed to the board for the term expiring at the company’s 2025 annual meeting of stockholders.
“During the nearly two decades that Cerberus has been invested in Albertsons, the company has achieved tremendous growth and major milestones to become a nationally strong business and leader in its communities,” Feinberg said. “I want to specifically thank Chan for his tireless work and dedication to the company on behalf of all stakeholders, and Chan has been a great partner to the company. I am excited to continue that partnership. I look forward to working with my colleagues on the board and supporting Vivek, his management team and the company as it continues to innovate in the dynamic grocery industry and deliver quality and affordable choices to customers across the United States.”
Added Feinberg: “As a stockholder in the company, Cerberus reiterates its support for the proposed merger with The Kroger Co. based on the compelling value proposition for all stakeholders, including the companies’ customers, associates, communities served by their stores, and investors. I am excited to have joined the board to continue driving value for all stockholders and other stakeholders.”
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Galbato has been Albertsons' co-chairman since April 2021. He is the CEO of Cerberus Operations and Advisory.
In its latest financial quarter, Albertsons reported a year-over-year increase in net sales and other revenue, which was driven by a 2.5% increase in identical sales. However, net income was $145.5 million, or 25 cents per share, during the second quarter, compared with $266.9 million, or 46 cents per share, during Q2 of FY23. Additionally, adjusted EBITDA was $900.6 million, or 4.9% of net sales and other revenue, compared with $976.9 million, or 5.3% of net sales and other revenue, during Q2 of FY23.
As of Sept. 7, Albertsons Cos. operated 2,267 retail food and drug stores with 1,726 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. PG also named the company one of its Retailers of the Century.
