Albertsons' fourth-quarter results maintain year-over-year growth, helped by online sales growth

Recently, the US grocery company Albertsons announced its earnings for the entire fiscal year and the fourth quarter of 2020. For the 12 weeks ending February 27, 2021 (the company's fourth quarter of fiscal 2020), the company's sales and other income were $15.8 billion, an increase of 11.8% year-on-year, thanks to a 282% increase in its digital sales.

Albertsons, based in Idaho , is a grocery company that is the second-largest supermarket chain in North America after Kroger , with 2,750 stores.

It is understood that in the 52 weeks ending February 27, 2021 (the company's fiscal year 2020), the company's sales and other income were US$69.7 billion, a year-on-year increase of 16.9%, which was also benefited from the growth of its digital sales.

The company said it has increased its focus on digital efforts over the past year, including micro-fulfillment warehouses, new delivery options, contactless kiosks ... and even robots. Those efforts have led to a 258% increase in digital sales, though the company did not disclose what percentage of its overall sales are digital.

“We delivered record results for the full year as a result of our strong execution, drove meaningful market share gains, and are positioned for continued success and strong performance in fiscal 2021,” said Vivek Sankaran, president and CEO of Albertsons.

The company has been beefing up its digital capabilities to grow online sales, which have been accelerating during the pandemic, and in March the retailer formed a partnership with Google to develop extensive omnichannel customer services.

Last year, Albertsons spent $1.63 billion in capital, including digital projects and remodeling of 409 of its stores — about 17% of its 2,277 stores. The company expects to spend $1.9 billion to $2 billion on capital this year.

As of February 27, 2021, Albertsons operates 2,277 retail stores, 1,727 pharmacies, 400 associated fuel centers, 22 dedicated distribution centers, and 20 manufacturing facilities. The company operates more than 20 stores in 34 states and the District of Columbia.

Online sales can provide a wide variety of related services, from big data information to offline delivery. As the level of specialization increases, the market competition for online sales will become more intense.

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