Albertsons is focusing on improving its in-store customer experience as it works to turn around its business after two straight quarters of same-store sales declines. The company’s leaders believe that delivering a better experience will help create greater value for shoppers.
CEO Susan Morris said on a recent earnings call that the company must deliver consistently for its customers, with factors like price, promotions, freshness, convenience, selection, and customer service all playing a role. Morris emphasized that Albertsons’ goal is not to be the cheapest option, but rather to offer a balanced value proposition that resonates with its customers.
Streamlining Operations
Albertsons has launched several initiatives to streamline its operations and improve the customer experience. The company has reduced the number of regional divisions from 11 to four, which Morris believes will help improve store conditions and keep store teams focused on taking care of customers.
The grocer’s comparable-store sales declined just shy of 1% year over year in the second quarter of 2026, according to the earnings report. Digital sales rose 11% year over year, but net sales and other revenue dipped 0.1% year over year to $18.9 billion.
Albertsons is making strategic price investments on a more individualized level via tools like the Albertsons for U loyalty program. Morris said that the program allows the company to create personalized offers that may mean something different to each customer.
Improving the In-Store Experience
Albertsons must get the in-store experience right, according to Morris. The company must focus on the basics, including getting the right products inside store formats that customers enjoy. However, Neil Saunders, managing director at GlobalData Retail, believes that Albertsons’ stores are functional but lack inspiration or excitement.
Saunders said that the stores feel like they “were made for a different era” and tend to be too large for what modern customers expect from a grocer. He also noted that there is not enough newness in the offer to showcase new brands and new products.
Albertsons’ efforts to streamline its store operations and experience may include layoffs and closing stores in underperforming markets, according to Morris. They will reduce shrink, raise standards, and commit to offering the best training for associates.
Morris believes that these steps will improve the customer experience and ultimately the company’s business results. By focusing on delivering a better experience, Albertsons hopes to create greater value for its customers and turn around its business.
The company’s digital sales have been rising, with an 11% increase year over year. The company must find ways to reverse this trend and improve its business results.
