Albertsons said yesterday that Q2 net sales reached $17.9 billion, up from $16.5 billion during the same period a year earlier - driven by a 7.4 percent increase in same-store sales, which in turn was driven by high food price inflation.
Q2 digital sales were up 36 percent.
Net income for the period was $342.7 million, up from $295.2 million during the same period a year ago.
"Our team continued to deliver strong performance during the second quarter," Vivek Sankaran, CEO, said. "Throughout the quarter, we continued to invest in our digital transformation, our differentiation in Fresh and the modernization of our capabilities. As we look ahead to the balance of the year, we believe we are well-positioned to further accelerate in each of these areas, as we continue to roll out our Customers for Life strategy."
Albertsons also said that there was 16 percent increase in loyalty club membership, to a total of 31.8 million.
- KC's View:
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I was talking to an industry friend the other day, and he suggested that Albertsons' numbers - while strong - have to be taken with a grain of salt.
Performance over the past few years has been strong because everyone in the supermarket business did well during the pandemic - if you could bring merchandise in the back door, you could send it out the front door. And current numbers are being inflated by … well, inflation.
Which is why Albertsons has been looking for strategic alternatives since February, and why a deal with Kroger makes sense to the two players.
Nothing wrong with that. Unless, of course, you are a skeptical legislator or regulator.
One thing does occur to me, though. Think about Albertsons' increased loyalty participation, and consider how much more powerful that could be when combined with the superior intelligence generated by Kroger's 84.51°.
