BOISE, Idaho — Albertsons Cos. said that its third-quarter revenue increased 1.9% to $14.1 billion, driven by a 2.7% increase in comparable-store sales.
Same-store sales have now increased for eight consecutive quarters. Gains in the 12 weeks to November 30 were attributed to growth in sales of its Own Brands merchandise. Participation in Albertsons’ grocery delivery and curbside pick-up options also increased in the quarter, the company reported on Tuesday.
Own Brands penetration hit a new high of 25.6%, Albertsons said, and digital sales were up 34% in the quarter.
“We are focused on providing our customers with an easy shopping experience, exciting merchandise and friendly customer service in our omnichannel shopping environment, and creating deep and lasting customer relationships,” said Vivek Sankaran, the supermarket operator’s president and chief executive officer. “Our productivity and cost-reduction initiatives are also beginning to take shape, which we intend to use to fund strategic growth investments, offset cost inflation and support earnings growth.”
Net income was $55 million in the quarter, and Albertsons said its gross profit margin was 28.3%, up 0.5% from the year-earlier period.
Year to date, Albertsons has appropriated about $1.1 billion for capital projects, including investments in strategic technology, 153 store remodels and the opening of 12 new stores.
As of November 30, the company operated 2,260 retail food and drug stores with 1,732 pharmacies, 402 associated fuel centers, 23 dedicated distribution centers and 20 manufacturing facilities. Its stores predominantly operate under the banners Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Amigos, Haggen and United Express.