Is Albertsons going out of business? The short answer is no. The grocery giant still runs more than 2,200 stores and still turns a profit. But headlines about closures and weak sales have many shoppers and workers worried. This article explains what is happening in plain language. We’ll cover the company’s history, its money problems, the store closures, the failed Kroger deal, and the pressure from Walmart and Costco.
Is Albertsons Preparing for a Major Business Shake-Up?
In many ways, yes. In October 2026, Albertsons pulled its full-year forecast and launched a broad review of its business to cut costs and lower prices. Former eBay and HP chief Meg Whitman recently joined as executive chair. Leaders say nothing is off the table, and CEO Susan Morris has hinted at possible job cuts and exits from weak regions. A turnaround plan is expected on the fourth-quarter earnings call, with an investor day planned for spring 2027.
How Albertsons Became One of America’s Biggest Grocery Chains
Joe Albertson opened his first store in Boise, Idaho, in 1939. The company later grew by buying older chains. Acme dates back to 1891, Jewel to 1899, Safeway to 1914, and United Supermarkets to 1916. The modern company took shape under private equity firm Cerberus, which began combining chains in 2006. It added Acme, Jewel-Osco, and Shaw’s in 2013 and Safeway in 2015, then went public in June 2020.
What Makes Albertsons Different From Other Supermarket Companies?
Albertsons doesn’t run under one name. It keeps local banners shoppers already trust, such as Safeway, Vons, Jewel-Osco, Shaw’s, Acme, and Tom Thumb. Each region keeps its own feel while the company shares buying power and technology behind the scenes. It also leans on store brands, in-store pharmacies, and a large loyalty program that powers personalized deals. Digital sales rose 11% last quarter. These strengths are real, but they haven’t lifted overall sales yet.
The Financial Challenges Behind Albertsons’ Recent Struggles
The numbers show a company under pressure, not in free fall. Last quarter, identical sales slipped 0.8% and net income dropped to $52 million from $169 million a year earlier. Delivery costs and shrink, meaning theft and waste, squeezed margins. Albertsons also carries higher costs than rivals like Walmart and Kroger, and lower-income shoppers are trading down to cheaper items. An opioid-related charge pushed it to a loss in the final quarter of fiscal 2025.
Why Albertsons Is Closing Selected Grocery Stores
Albertsons closed about 30 stores in 2025 and has shut at least a dozen more this year, including Safeway, Vons, Acme, and Tom Thumb locations. The company says it closes only money-losing stores, and only as a last resort. The human cost is real. Two North Texas closures in April affected 138 workers, according to state filings. Even so, Albertsons expects to finish the fiscal year with more stores than it started with, because new openings continue.
How the Failed Kroger Merger Changed Albertsons’ Future
In 2022, Albertsons agreed to merge with Kroger in a $24.6 billion deal that would have been the largest supermarket merger in U.S. history. Courts in Oregon and Washington blocked it in December 2024, siding with regulators who feared higher prices. Albertsons then ended the deal and sued Kroger for not trying hard enough to win approval, which Kroger denies. It now seeks more than $9 billion, and a trial was set for late October 2026. Albertsons must now fix its problems alone.
What Happened to Albertsons’ Most Recognized Grocery Brands?
Nothing dramatic has happened to the big names. Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, and Randalls are all still open. Individual stores have closed, but the banners themselves remain. The lineup could still change, though. Albertsons says its business review will examine its portfolio of brands along with costs and operations. That doesn’t mean any banner is disappearing, but changes are possible.
Is Albertsons Still Serving Customers Across the United States?
Yes. Albertsons still operates more than 2,200 stores in 34 states and Washington, D.C., many with pharmacies, fuel centers, and coffee shops. Shoppers can still use its website, app, and delivery or pickup services as usual.Customers are still shopping and ordering online, and closures are happening one store at a time, so most communities haven’t lost service. If your store closes, the company’s online store locator can point you to the nearest alternative.
Why Walmart and Costco Are Putting Pressure on Albertsons
According to Numerator data, Walmart captures about a fifth of U.S. food and beverage spending, while Costco and Kroger each hold roughly 8%. Albertsons sits near 4.5%. Walmart and Costco win on price and scale, and both keep gaining ground. One consultant says Walmart can price groceries tightly because it earns higher margins on items like clothing. An analyst adds that Safeway has been losing shoppers to Costco for about 20 years. Amazon and discount chains add more pressure.
What Should Albertsons Customers and Employees Expect?
Customers should expect Albertsons to keep operating, with a push for lower prices through personalized loyalty deals rather than broad price cuts. Some weak stores may still close, so watch for local notices. Employees face more uncertainty. Morris has signaled the review could lead to job cuts, and past closures already triggered layoffs and official notices. Workers should follow company announcements closely and ask managers about transfer options if their store is affected.
Does Albertsons Have a Future in the American Grocery Market?
Most signs say yes, though it won’t be easy. Nothing in its latest earnings points to a shutdown, because Albertsons still earns a profit and keeps investing. The bigger question is how it can grow again against stronger rivals. The next tests are the turnaround plan expected in 2027, the court ruling in the Kroger lawsuit, and whether Albertsons can win back shoppers without hurting profit. Success could leave it leaner and stronger. If not, more closures are likely.
Conclusion
So, is Albertsons going out of business? No. The company is still open, still profitable, and still serving millions of shoppers. It is closing weaker stores, cutting costs, and rethinking how to compete with Walmart, Costco, and Amazon. If you shop at or work for Albertsons, there’s no need to panic, but it makes sense to stay informed. The coming months should bring a clearer plan, which will say more than any rumor about Albertsons going out of business.
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