SPECIAL REPORT Albertsons

Founded in 1939 by Joe Albertson, Albertsons Companies has grown to include 2,200 locations with 20 banners in 35 states, 22 distribution centers, 20 manufacturing plants and 290,000 associates. Since its inception, Albertsons has acquired several companies, which make up the 20 banners Albertsons holds.

History: Albertson was a former Safeway district manager who invested $5,000 of his own money and $7,500 from a family member to partner with L.S. Skaggs to open the first Albertsons location in Boise, ID. During this time, several other grocers were also opening their businesses as the demand for convenient and affordable one-stop shopping continued to grow. While there was a lot of competition in the industry at this time, Albertson knew what it took to operate a successful grocery store. His knowledge stemmed from the mentality that grocers should give consumers what they want and need at a fair price. The company then became one of the first modern grocery stores, and today is considered one of the biggest food and drug merchants in the US.

In 2006, Cerberus Capital Management officially bought Albertsons, and according to media reports, the company currently owns a stake of approximately 28 percent. The company also took Albertsons public in 2020. Following acquisitions, Albertsons has taken on several banners, with one of the more significant being its merger with Safeway in 2015.

"We plan to be the favorite local supermarket in every community we serve," said Safeway President and Chief Executive Officer Robert Edwards, who became President and CEO of the newly combined company. "We will do this by knowing, listening to and delighting our customers; providing the right products at a compelling value; and delivering a superior shopping experience. We will also continue to be active members of our local communities."

Currently, Albertsons operates more than 40 fuel facilities, which includes about 36 convenience stores. Alongside this, the company’s delivery services are accessible in 12 of the top US markets, and there are approximately 1,700 in-store pharmacies.

In 2018, Albertsons opened its flagship location in Meridian, ID. The location is known as Market Street. With more than 100,000-square-feet of space, it is the chain’s largest store showcasing ‘next generation’ retail experience. The location has a full bar and restaurant known as Talon Tap & Spirits, which doubles as a food court. There are several ongoing events at the location such as cooking classes, live music, catering services, a walk-in wine cellar and more.

Leadership: Albertsons has had many leaders at the helm of the company, all of whom have advocated and pushed for the grocer to evolve and grow while ensuring consumers are at the forefront of everything they do.

Today, Vivek Sankaran is the CEO of the company, joining the team in 2019. Previously, Sankaran was the CEO of PepsiCo North America. With 10 years of experience in PepsiCo, Sankaran held several positions at the company such as President and Chief Operating Officer, Chief Commercial Officer and SVP of Strategy.

Alongside the CEO of Albertsons, Sharon McCollam has held the position of President and Chief Financial Officer since 2021. McCollam leads the development of the retailer’s growth and transformation strategies while overseeing all aspects of corporate finance, strategy and business development as well as information technology, supply chain operations and property development. Prior to her role at Albertsons, McCollam was the evp, Chief Administrative and Chief Financial Officer of Best Buy from 2012 to 2016.

Anuj Dhanda serves as the company’s evp, Chief Information Officer. He joined the company in 2015 and was inaugurated into the CIO Hall of Fame in 2019. Before his career with Albertsons, he worked at JP Morgan Chase and then held the position of evp and Chief Information Officer at PNC Financial Services Group. In 2013, Dhanda served as Chief Information Officer at Giant Eagle as well.

Omer Gajial began his career at Albertsons in 2020 and is the company’s Chief Digital Officer and evp Health. He focuses on building a talented and diverse pharmacy team and supports a healthy future for all the communities the company serves. In 2022, he began overseeing the digital customers and e-commerce experience.

Kroger & Albertsons: In 2022, Kroger and Albertsons Companies announced a merger agreement. The companies would merge two organizations with well-known brands to establish a national footprint and unite around Kroger’s Purpose to Feed the Human Spirit. The combination pending regulatory approval would expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a leading e-commerce experience.

According to the companies, the agreement was unanimously approved by the board of directors of each company. Kroger would acquire all of the outstanding shares of Albertsons Companies, common and preferred stock for an estimated total consideration of $34.10 per share, which was approximately $24.6 billion.

The companies employ more than 710,000 people and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers. Together the companies have built a first-rate integrated ecosystem that spans 48 states and the District of Columbia, which gives consumers a convenient and affordable shopping experience in-store and online.

"We have been on a transformational journey to evolve Albertsons Cos. into a modern and efficient omnichannel food and drug retailer focused on building deep and lasting relationships with our customers and communities,” said CEO Vivek Sankaran. “I am proud of what our 290,000 associates have accomplished, delivering top-tier performance while furthering our purpose to bring people together around the joys of food and to inspire well-being."