Albertsons added more than 400 private brand items in first quarter
Boise, Idaho-based Albertsons said it increased own brand sales penetration slightly to 24 percent in the first quarter of fiscal 2018, which ended June 16. Albertsons also reported it expanded its own brands to include more than 400 new items and that its e-commerce sales, including sales of Plated meal kits, grew 108 percent.
Sales and other revenue increased $193.4 million, or 1 percent, to $18.7 billion during the 16 weeks compared to $18.5 billion during the 2017 first quarter. The increase was driven by an increase in fuel sales of $154.1 million and the company's 0.2 percent increase in identical sales, Albertsons said in a press release.
Gross profit margin increased to 27.7 percent during the first quarter compared to 27.4 percent during the first quarter of 2017.
“We are pleased with our first-quarter results as both identical sales and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased for the second consecutive quarter," said Bob Miller, Albertsons’ chairman and CEO in a statement. "We continue to roll out unique options for our customers as we strive to differentiate through our own brands and rapidly expanding e-commerce offerings.”
As previously announced on Feb. 20, the company and Rite Aid entered into a definitive agreement under which Albertsons will merge with Rite Aid. The merger is expected to close in the next few months.
"We are also looking forward to our merger with Rite Aid," added Jim Donald, Albertsons’ president and chief operating officer, in a statement. "Together we will be a differentiated leader in food, health and wellness.”
Albertsons operates 2,300 retail food and drug stores in 35 states including Albertsons, Safeway, Vons, Pavilions, Randalls and others.