Market News

Albertsons Considers Sale

Albertsons, the second-largest grocery chain in the United States, is exploring the possibility of selling underperforming, non-core assets. The decision was made in an effort to become leaner and more profitable. The company refused to discuss the results of its recent strategic review until its board of directors had approved a deal. While the Idaho-based chain's financial results have improved markedly over a year ago (in June, it announced that its quarterly profit had tripled from a year earlier, and its second-quarter net earnings were US$107 million, up from US$104 million in last year's second quarter), management has conceded that it has been hurt by increased competition from companies such as Wal-Mart. Management insists that Albertsons will not slow down or lose focus while negotiations are underway. Albertsons owns approximately 70 million sq. ft.—or more than 60% of its nearly 120 million sq. ft. of real estate. Source; Canadian Grocer E-Newsletter, Sept. 23, 2005.