For its fiscal quarter ending September 7, Albertsons reported a +2.5% increase in consolidated comparable sales, which was driven by digital sales (+24%) and pharmacy (GLP-1 drugs). As the chart below shows, traffic improved throughout the quarter. The gain for Pavilions in August mainly reflects easier comparisons; however, those gains have extended through September.
Looking at the +2.5% comparable sales gains, if one excludes digital and pharmacy, comparable sales were down around -2%. The difference between Placer traffic (-0.4%) and sales reflects fewer items per basket as consumers move between banners to clip loyalty offers and the like (an industry trend that we frequently write about). We show that increase in cross-shopping for the Albertsons banner in the table below. The decline with Sam’s likely reflects share loss for Albertsons as these loyal (3X+) Sam’s customers are up 7% year-over-year. The gains by Sprouts are outstanding and we’ve highlighted their success in winning consideration, loyalty, and market share.
Lastly, the 2.5% gain is +110 basis points stronger than the prior quarter which likely reflects households selecting to eat more at home given the high and still inflationary prices for away-from-home.
