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Albertsons CEO: Changing Consumer Habits Are Positive For Grocer

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Albertsons CEO: Changing Consumer Habits Are Positive For Grocer

Consumers are spending more time working and eating from home during the COVID-19 pandemic, and these shifts in habits are here to stay, Albertsons Companies Inc. (NYSE: ACI) CEO Vivek Sankaran said on CNBC's "Squawk on the Street" hours after the company reported third-quarter results.

2021 Food Trends: At-home food trends that consumers adapted to over the past six months will continue throughout 2021, Sankaran said.

Albertsons is positioned to continue addressing the demand, and while revenue growth could moderate a bit over the months, it will remain elevated compared to 2019 levels, he said. 

Food inflation on the other hand peaked during the earlier days of the pandemic and has trended lower over the last few months, the CEO added. 

Related Link: Mid-Morning Market Update: Markets Edge Higher; Albertsons Earnings Beat Expectations

Digital Growth For Albertsons: Albertsons recorded 225% growth in digital sales, Sankaran said, adding that the online channel was initially expected to account for 10% of total sales by 2025.

The recent momentum makes the case for digital sales to reach the 10% milestone earlier before reaching 15% or more by 2025, he said. 

COVID-19 Vaccine Rollout: Albertsons is providing an important service by providing vaccine services across its more than 1,700 in-store pharmacies.

Albertsons employs 11,000 pharmacists and pharmacy technicians who have already dispensed 45,000 doses, Sankaran said.

This represents less than 5% of Albertsons' total capacity, and the grocer along with its rivals, are standing by and ready to play a bigger role, the CEO said. 

For the time being, Albertsons isn't mandating vaccines for its workers, he said.  

ACI Price Action: Albertsons shares gained 2.09% Tuesday, closing at $17.10. 

 

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