Albertsons says tech and store brands fueled increase in sales

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Boise-based Albertsons reported its financial results to Wall Street – showing increases in most key indicators in its 3rd quarter.

Highlights:

  • The company rang up $14.1 billion in sales for the third quarter. That amount represents an increase from $13.8 billion in the same time in 2018.
    • The so-called “EBITDA” number – how much the company made before the costs of interest, taxes, depreciation, and amortization – was $634 million. The company said that amount beat expectations.
    • Net income – the bottom line – stood at $55 million.
  • Same-store sales increased by 2.7%, the 8th quarter the company saw more sales from existing stores over the year before.
  • Online and drive-up sales increased by 34%
  • Profit margin increased to 28.3%, from 27.8% the year before.

Albertsons continues to highlight its focus on what it calls “own brands” – aka the store brands. It says those products, like O Organics and Signature Select, made it into 25.6% of baskets, also up from 2018. Store brands typically carry a higher margin than national brand products.

[In ecommerce battle, Albertsons looks to small neighborhood warehouses; amps up ‘drive up’ service in Boise area]

For the first 40 weeks of its fiscal year, the company said it spent $1.1 billion on capital improvements. That included remodeling 153 stores and opening 12 new locations, including the MarketStreet store in Meridian.

“Our identical sales momentum continued in the third quarter, as our core business continues to deliver strong growth,” President and Chief Executive Officer Vivek Sankaran said in a statement. “We are focused on providing our customers with an easy shopping experience, exciting merchandise and friendly customer service in our omnichannel shopping environment, and creating deep and lasting customer relationships.”

Joe Albertson founded Albertsons in Boise in 1939. It currently operates 42 stores under the Albertsons and Safeway brands in Idaho.

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