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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsAlbertsons’ investment story has shifted from whether its proposed Kroger merger would close to whether the company can execute as a standalone grocer. Susan Morris, a longtime company executive and former COO, became CEO on May 1, 2025, and a May reorganization gave named leaders clearer responsibility for merchandising, digital, loyalty, technology, data science and product management. Those moves reveal management’s priorities; they do not prove that performance has improved. The evidence to weigh is mixed: fiscal 2025 digital and comparable sales grew, but the extra 53rd week inflated reported revenue, while net income and adjusted EBITDA fell year over year.
Who is Albertsons’ CEO, and what changed in the leadership team?
Susan Morris became Albertsons’ CEO and a director on May 1, 2025, succeeding Vivek Sankaran. The handoff was an internal succession: Morris had been COO since January 2018 and had held Albertsons executive roles since 2010. Sankaran notified the board of his decision to retire on February 27, 2025. Albertsons described the succession as a way to maintain execution of its Customers for Life strategy during the transition.
The company later made operating accountabilities more explicit. On May 30, 2025, it announced that Omer Gajial, then EVP and Chief Merchandising & Digital Officer, would leave for outside opportunities. The reshuffle assigned leaders to these areas:
- Michelle Larson moved from West operations to EVP and Chief Merchandising Officer, with responsibility for Own Brands, category strategy, pricing and promotion, space planning, fuel and commission income.
- Jennifer Saenz, as EVP and Chief Commercial Officer, added digital experiences, marketing and loyalty, and the Albertsons Media Collective to her pharmacy and ecommerce responsibilities.
- Anuj Dhanda took on data science and product management alongside technology and transformation.
- Mike Withers took the West operations role, with Northern and Southern California combined in the region; Rob Backus remained EVP, Operations – East.
The structure puts recognizable owners on customer-facing and operational priorities, but an organization chart is not an outcome measure. Albertsons said the changes were intended to accelerate its strategy to earn customers for life; that is the company’s stated aim, not evidence that the reorganization has already improved sales, margins or returns.
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Why did the investment thesis move beyond the Kroger merger?
On December 11, 2024, Albertsons announced it had exercised its contractual right to terminate the proposed Kroger transaction after federal and Washington courts issued injunctions the prior day. The merger-centered thesis gave way to a standalone question: can Albertsons grow and return capital without the transaction?
In that same announcement, Albertsons paired its standalone direction with a 25% increase in the quarterly cash dividend, authorization for $2 billion in share repurchases, further investment in the business, associates and communities, and an effort to accelerate Customers for Life. These announced capital-return actions are relevant to shareholders, but they do not by themselves establish that the standalone strategy will create value. A repurchase authorization is permission to buy shares, not proof that the full amount was spent or that any purchases were made at an attractive price.
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Then-CEO Vivek Sankaran said, “We start this next chapter in strong financial condition with a track record of positive business performance.” That is the CEO’s characterization in Albertsons’ termination announcement, not an independent assessment of the company’s condition.
What do Albertsons’ fiscal 2025 results say about execution?
Albertsons’ FY2026 Form 10-K, filed April 27, 2026 and covering the fiscal year ended February 28, 2026, provides the comparative fiscal 2025 figures below. The fiscal-year label is not a calendar-year label. Fiscal 2025 results are a backdrop for Morris’s leadership, not a clean test of her performance as CEO: her appointment took effect May 1, 2025, after that fiscal year had ended.
| Measure | Fiscal 2025 | Fiscal 2024 comparison or context |
|---|---|---|
| Net sales and other revenue | $83.1725 billion, up 3.5% year over year; Albertsons estimated the additional 53rd week contributed $1.36 billion. | Reported revenue growth is not fully comparable because fiscal 2025 included an extra week. Figures are from Albertsons’ FY2026 Form 10-K. |
| Identical sales, excluding fuel | Up 2.0%. Albertsons attributed the increase primarily to pharmacy sales; digital contributed to the omnichannel mix, while fuel sales and net store closures were offsets. | This like-for-like measure is more informative about underlying sales than headline revenue growth, though it is not a measure of profit. Figures and attribution are from Albertsons’ FY2026 Form 10-K. |
| Digital sales | Up 21%. | Growth shows higher digital sales, not whether digital orders are profitable after delivery, handling and other costs. Figure is from Albertsons’ FY2026 Form 10-K. |
| Net income | $217.4 million. | $958.6 million in fiscal 2024. Figures are from Albertsons’ FY2026 Form 10-K. |
| Adjusted EBITDA | $3.9015 billion. | $4.0047 billion in fiscal 2024. Figures are from Albertsons’ FY2026 Form 10-K. |
The growth measures and profit measures tell different parts of the story. The 53rd week materially lifted reported revenue, so the 3.5% increase should not be read as fully comparable growth. Identical sales excluding fuel rose 2.0%, and digital sales rose 21%; meanwhile, net income and adjusted EBITDA were lower than in fiscal 2024. Taken together, these figures support neither a simple “growth is accelerating” conclusion nor a claim that the leadership changes caused weaker earnings. Fiscal 2025 predates Morris’s CEO tenure, and the results alone do not isolate the effects of digital expansion, fuel, store closures or other factors on profitability.
What does the merger litigation mean for the standalone story?
The merger’s termination did not end all merger-related uncertainty. In its FY2026 Form 10-K, Albertsons said it had filed a Delaware action against Kroger seeking damages and the $600 million termination fee. Kroger disputed Albertsons’ termination and fee claims and asserted counterclaims. The filing said discovery was ongoing and trial was scheduled to begin October 19, 2026. These are the companies’ descriptions of contested claims; they are not a court’s decision on the merits.
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The same filing reported that Washington had obtained a joint-and-several judgment of $28.4 million in attorneys’ fees and costs against Albertsons and Kroger, which the companies were appealing. Albertsons said it believed Kroger was responsible under the merger agreement and had not recorded an estimated liability. That reported position does not decide who will ultimately bear the cost. The litigation’s outcome and potential financial consequences therefore remained unresolved in the filing.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should investors watch next?
The leadership redesign makes merchandising, customer engagement and digital capabilities visible priorities. To judge whether those priorities translate into a stronger business, track reported results rather than relying on management’s stated intent. Useful signals include:
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- Comparable sales: follow identical sales excluding fuel and distinguish it from revenue changes caused by calendar weeks, fuel, or store openings and closures.
- Digital economics: compare digital sales growth with company-wide earnings and margins; sales growth alone does not establish profitable growth.
- Profit and cash generation: watch net income, adjusted EBITDA, margins and cash returns alongside sales. The fiscal 2025 results show why revenue growth alone is an incomplete scorecard.
- Capital allocation: assess actual dividends, repurchases and investment in operations over time, rather than treating announced intentions or authorization as completed results.
- Legal developments: distinguish the Delaware claims, the Washington judgment and appeals, and any later rulings or disclosures. The FY2026 filing is a dated snapshot, not a guarantee that the litigation status has stayed unchanged.
Albertsons’ latest leadership snapshot in that FY2026 filing lists Morris as CEO and director and Sharon McCollam as president and CFO. It also names Robert Backus for East operations, Anuj Dhanda for technology and transformation, Michelle Larson for merchandising, Thomas Moriarty for M&A and corporate affairs, Allison Pinkham for human resources, Evan Rainwater for supply chain, manufacturing and strategic sourcing, and Michael Withers for West operations. That filing offers a reference point for who held senior roles, but investors should use later company disclosures for any leadership changes after its reporting date.
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