As Albertsons struggles with its second straight quarter of same-store sales declines, company leaders are turning to better in-store CX and streamlining operations to improve the business.
The grocer has launched a number of initiatives with good reason and intentions, but it has created too many layers of complexity over time, CEO Susan Morris said on a Q2 2026 earnings call Tuesday. Now, Albertsons is turning its focus to a few areas that will create greater value for shoppers.
“We must deliver more consistently for our customers,” Morris said on the earnings call. “Price matters, promotions matter, freshness matters, convenience, selection and customer service matter. Our job going forward is to deliver all of those things better than we do today.”
Albertsons wants to sharpen its value perception, according to Morris. The amount customers are willing to pay is important, but aspects such as product variety, services and ease of shopping are vital as well.
“Our goal is not to be the cheapest guy in town, but rather to have the right balanced value proposition that resonates with the customers that we serve uniquely by market,” Morris said.
Albertsons has its work cut out for it. The grocer’s comparable store sales declined just shy of 1% year over year in the second quarter of 2026, according to an 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.
The grocer’s plans include strategic price cuts, but it is avoiding broad-based price reductions. Instead, it’s making strategic price investments on a more individualized level via tools like the Albertsons for U loyalty program.
“It's about our ability to leverage our very, very strong loyalty program and create personalized offers that may mean something very different to me as a consumer than it might to you as a consumer,” Morris said.
Getting the in-store experience right
As Albertsons pursues streamlining its operations, it must “double down on the basics,” Morris said. That includes getting the right products inside store formats customers enjoy.
Albertsons stores may be functional, but they fail to offer customers inspiration or excitement, according to Neil Saunders, managing director at GlobalData Retail.
“There’s also not nearly enough newness in the offer to showcase new brands and new products,” Saunders said in an email. “The whole experience is extremely average, below par even, but when the prices are expensive, that’s simply not good enough.”
One issue is that Albertsons’ stores feel like they “were made for a different era,” Saunders said. They tend to be too large for what modern customers expect from a grocer, but Albertsons has let them be rather than invest in reconfiguring the layouts.
Streamlining operations to improve the in-store experience
The grocer’s efforts to streamline its store operations and experience plans may include layoffs and closing stores in underperforming markets, according to Morris.
Albertsons has already reduced complexity by cutting the number of regional divisions from 11 to four in July. The change has CX implications, as the regional executive vice presidents who oversee the new divisions were charged with elevating store conditions and keeping store teams focused on taking care of customers, according to Morris.
“With that kind of focus on elevating store standards and execution, it eliminates the distractions from all the noise happening around us,” Morris said. “Our team knows that we have essentially two roles in our company: We either serve customers directly or we serve those that serve customers.”
Store execution is one of the key areas where Albertsons sees early opportunities for improvement, according to Morris. The company will reduce shrink, raise standards and commit to offering the best training for associates.
“These steps and more, taken together, will improve the customer experience and ultimately our business results,” Morris said.
