Albertsons plans to invest heavily in its owned brands as it seeks to both boost customer loyalty and provide shoppers with some relief from inflationary price increases. In a conference call discussing the supermarket retailer’s Q2 results, CEO Susan Morris said she believes Albertsons can drive “outsize growth” in its private label brands, “reinforcing our competitive advantage and long-term profitability as we drive penetration from 25% to 30% over time.”
“One of the biggest things we will do to bring value to our customers is to continue to invest and grow our penetration of owned brands,” said Sharon McCollam, President and CFO at Albertsons during the conference call.
The move follows significant private label investments by other major players in grocery. In February 2024 Target introduced the 400-item Dealworthy owned brand, with items ranging in price from less than $1 to $10. In May 2024 Walmart introduced its Bettergoods private label line of groceries, an assortment of 300 food products priced up to $15, with most priced under $5. And Amazon united two of its private label grocery brands under the simplified Amazon Grocery name earlier this month.
Albertsons’ private label goal comes after a fairly strong quarter for the retailer: revenue grew by 2% in its Q2, which ended Sept. 6, 2025, rising to $18.9 billion from the $18.6 billion generated during the same period the previous year. Identical-store sales rose 2.2%, when adjusted to exclude stores impacted by a three-week labor strike in Colorado. The retailer’s digital sales also increased 23% during the quarter, and Albertsons boosted its loyalty program membership by 13% to 48.7 million.
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