Albertsons Companies to launch strategic review

Albertsons Companies has announced that it plans to conduct a strategic review of the company’s structure to enhance “growth and maximize shareholder value,” a move that could impact the company’s private label portfolio.

First reported by Store Brands’ sister publication Progressive Grocer, the review will include "an assessment of various balance sheet optimization and capital return strategies, potential strategic or financial transactions and development of other strategic initiatives to complement Albertsons’ existing businesses."

The company will also be "responding to inquiries," a signal that the company may be entertaining a sale or an acquisition. Albertsons Companies has hired Goldman Sachs and Credit Suisse to conduct the review.

"The board believes the continuing strength of our business and the scale of our portfolio of assets warrants a deep and considered review of all possible paths towards maximizing value creation,” said Chan Galbato, co-chair of the board of directors. “Albertsons operates more than 2,270 stores across 34 states with growing digital and omnichannel capabilities, along with a vast dedicated manufacturing and distribution infrastructure, which have become integral to the fabric of communities across the U.S. The board believes that this review, coupled with an ongoing focus on accelerating our transformation strategy, will create enhanced value for all our stakeholders including our customers, associates, and investors.”

The board of directors has not set a timetable for the review, the company said. Albertsons Cos. went public in 2020 and has increased sales ever since. In January, the grocer said that higher prices and an increase in customer traffic related to vaccines led Albertsons Cos. to report higher than expected sales and profit for the third quarter.

Boise, Idaho-based Albertsons operates more than 2,200 retail stores with 1,700-plus pharmacies, 400 associated fuel centers, 22 dedicated distribution centers and 20 manufacturing facilities. It operates stores across 34 states and the District of Columbia under more than 20 banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's and more. The company has an extensive portfolio of own brand items, and three of its ad campaigns received honors from Store Brands.