Getting tighter with the customer is working for Albertsons.
Armed with the company’s Customers for Life transformation strategy, Albertsons recorded positive numbers for FY 2022 fourth quarter and for all of FY 2022.
For the quarter, sales increased 5.6% and digital sales went up 16%. Loyalty members now sit at over 34 million, marking a 15% increase, and net income was $311 million. The entire FY 2022 recorded a 6.9% sales increase, a 28% digital sales increase and net income of just over $1.5 billion.
Albertsons CEO Vivek Sankaran gave a lot of credit to the Customers for Life transformation strategy, which had the grocer invest in the following: digitally connecting and engaging with customers through a frictionless omnichannel experience, differentiating the store experience, enhancing products and services, modernizing operational capabilities, and further embedding ESG throughout the company’s operations.
“We are pleased with our fourth quarter financial results and the suite of capabilities we continue to build in our business,” said Sankaran.
“As we look ahead to fiscal 2023, we believe we are well positioned to drive top-line growth by deepening relationships with our customers even as inflation continues. However, we also believe that the economic backdrop is uncertain and is likely to be more challenging later in the year. We have prepared our business for a more difficult consumer environment, and are expecting significant labor investments and inflationary cost increases.
Albertsons has introduced automated production planning to help with inventory management and created a mobile app which will feature items like recipes, pharmacy access and dietary preferences.
Albertsons Media Collective also is expected to be strengthened in the coming months. The network develops digital ads and other branded content for CPG companies. CitrusAd and Merkle are partners in the collective, which is focused on providing opportunities to connect brands to loyal shoppers by opening up native display and sponsored product inventory throughout the company’s website.
