As the retailer nears the summation of its blockbuster brick-and-mortar merger with Rite Aid, Albertsons Companies reported its first quarter fiscal 2018 results this week. Specifically, the retailer announced significant growth in its burgeoning e-commerce business as a result of dividends coming from the company’s investments in e-commerce and its Own Brands, as we reported on our sister publication.
Highlights from the quarter included:
“We are pleased with our first quarter results as both identical sales and Adjusted EBITDA increased for the second consecutive quarter,” said Bob Miller, Chairman and CEO, in a press release. “We continue to roll out unique options for our customers as we strive to differentiate through our best in class Own Brands and rapidly expanding e-commerce offerings. We are also reaffirming our fiscal 2018 guidance today and remain on track to deliver annual Adjusted EBITDA of $2.7 billion and complete the store conversions related to the Safeway integration by September, which we expect to allow us to further grow and enhance our operating performance.”
Speaking specifically about the Rite Aid merger, President and COO Jim Donald said the company anticipates several billion dollars in synergies to take effect upon completion of the deal.
"We are also looking forward to our merger with Rite Aid," added Donald. "Together we will be a differentiated leader in Food, Health and Wellness. We expect to realize $375 million in annual run-rate cost synergies within three years, and have the opportunity to generate $3.6 billion in annual sales synergies to fuel our future growth."
Will Albertsons find even more success after its merger with Rite Aid? Deli Market News will continue to keep you updated on what's happening in the retail sector.