Own Brands sales drive Albertsons Companies quarterly results
Boise, Idaho-based Albertsons Companies reported a same store sales increase of 1.5% and profit increases during the first quarter, attributing much of that growth to its Own Brands program, which reached a sales penetration of 25.3%.
Gross profit margin increased to 28% during the first quarter of 2019 compared to 27.7% during the first quarter of fiscal 2018. The company said its gross profit margin increase was primarily attributable to its better than expected fuel margins during the first quarter of fiscal 2019. Excluding the impact of fuel, gross profit margin increased 10 basis points compared to the first quarter of fiscal 2018.
"I am pleased with the position of our business at Albertsons Companies," said Vivek Sankaran, president and CEO. "Identical sales were positive for the sixth consecutive quarter, and we continue to expand our e-commerce and digital capabilities. We are focused on our sales momentum and will continue to elevate the end-to-end customer experience as we work to create a next-generation food retailer. We recognize the ever-changing retail consumer and are working swiftly to adapt our business to allow customers to shop with us whenever, wherever and however they want."
The company said its net income was $49 million during the first quarter of fiscal 2019 compared to a net loss of $17.7 million during the first quarter of fiscal 2018.
Albertsons currently offers approximately 1,400 private label products in its Own Brands program. Albertsons Cos. operates stores in 35 states under 20 banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs. It also owns meal-kit company Plated.