Albertsons eyes 30% private label penetration

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Albertsons believes its private label sales will expand to account for as much as 30% of its business as the supermarket operator continues to take steps to connect with price-focused shoppers, the company’s chief executive said Tuesday.

The grocer saw unit sales growth in its own brands portfolio during its latest fiscal quarter, stemming in part from its introduction of new products in multiple categories “that deliver exceptional value to our customers,” CEO Susan Morris said during Albertsons’ second-quarter earnings call.

Albertsons continues “to invest through a balanced approach of enhanced loyalty, incremental and personalized promotions, competitive pricing actions and vendor funding,” Morris said. The company also brought down prices in certain categories and markets in an effort to help people save money during the quarter, she added.

Albertsons’ efforts suggest it is on a path to raise its private label penetration above its current level of about 25%, according to Morris. The grocer’s private label penetration was 25.7% during the first fiscal quarter of 2025 and 25.4% during the final quarter of its last fiscal year.

Steps the company has recently taken “are driving customer engagement and loyalty, while also contributing to margin accretion through improved mix and merchandising,” Morris said.

“As we elevate the visibility and appeal of our own brands, we believe we can drive outsized growth in this critical area of our business, reinforcing our competitive advantage and long-term profitability,” she added.

Morris noted that shoppers took measures to save money during the second quarter, including stepping up their use of coupons and shortening their shopping lists. The company also saw customers focus on healthier eating, a trend that drove sales of items like fresh meat and produce, which are margin-accretive for Albertsons, she said.

“The pressure continues and we’re working very hard to give the customers what they want by market in a way that fits their budget,” Morris said.