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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Albertsons’ leadership changes shifted its investment story from whether the Kroger merger would close to whether a new, internally promoted leadership team can deliver as a standalone grocer. CEO Susan Morris took over in May 2025, and a May reorganization put clearer executive ownership on merchandising, digital, loyalty, data science and product management. Those choices signal priorities; they are not proof of improved results.
The financial evidence is mixed: Albertsons reported fiscal 2025 growth in identical sales and digital sales, but an extra week inflated reported revenue, while net income and adjusted EBITDA fell from fiscal 2024. Investors therefore need to distinguish operating progress from calendar effects, shareholder-return announcements and unresolved merger litigation.
How the investment story changed after the Kroger deal ended
Albertsons announced on December 11, 2024 that it had exercised its contractual right to terminate the proposed Kroger transaction after federal and Washington courts issued injunctions the previous day. That ended the immediate merger-closing thesis and put more weight on Albertsons’ ability to compete, grow and allocate capital as an independent company.
In that same announcement, Albertsons said it would increase its quarterly cash dividend by 25%, authorize a $2 billion share-repurchase program, invest further in its business, associates and communities, and accelerate its Customers for Life strategy. The announcement established those plans and authorization; it did not establish how much the company would ultimately spend on repurchases or what returns the investments would generate. Then-CEO Vivek Sankaran described the company as being in “strong financial condition.” That was management’s characterization, not an independent assessment. (Albertsons, December 11, 2024 merger-termination announcement.)
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With the merger no longer the central event, the investment case depends more directly on execution: retaining customers, improving comparable sales, managing costs and converting sales into earnings and cash. The leadership changes provide a map of what management chose to emphasize, but reported operating results—not the organization chart—will show whether those priorities are working.
Who leads Albertsons now, and what changed?
Susan Morris succeeded Vivek Sankaran
On February 27, 2025, Sankaran notified the board of his decision to retire, effective May 1. Albertsons named then-EVP and COO Susan Morris as his successor; she became CEO and a director on May 1, 2025. Morris had been COO since January 2018 and had held Albertsons executive roles since 2010, making the handoff an internal succession rather than a change to an outside leader. The company said the transition was intended to maintain execution of its Customers for Life strategy.
In its FY2026 Form 10-K, filed April 27, 2026, Albertsons identified Morris as CEO and director and Sharon McCollam as president and CFO. The filing also listed Robert Backus in East operations, Anuj Dhanda in technology and transformation, Michelle Larson in merchandising, Thomas Moriarty in M&A and corporate affairs, Allison Pinkham in human resources, Evan Rainwater in supply chain, manufacturing and strategic sourcing, and Michael Withers in West operations. This is the leadership snapshot in that filing, not a guarantee that no later changes occurred.
The May 2025 reorganization clarified functional ownership
On May 30, 2025, Albertsons announced that Omer Gajial, then EVP and Chief Merchandising & Digital Officer, would leave for outside opportunities. The company also reassigned several responsibilities:
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- 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 expanded her EVP and Chief Commercial Officer remit to include digital experiences, marketing and loyalty, and Albertsons Media Collective, in addition to pharmacy and ecommerce operations.
- Anuj Dhanda’s technology and transformation portfolio expanded to include data science and product management.
- Mike Withers took the West operations role, with Northern and Southern California combined in that region; Rob Backus remained EVP, Operations – East.
Albertsons said there were no other senior-team role changes. The company described the new structure as a way to accelerate its Customers for Life strategy. That is an announced intent, not a measured result. (Albertsons, May 30, 2025 leadership announcement.)
What the fiscal 2025 results show—and what they do not
The figures below come from Albertsons Companies, Inc.’s FY2026 Form 10-K, filed April 27, 2026. “Fiscal 2025” is Albertsons’ fiscal year, not calendar 2025; the filing says that year included an additional 53rd week.
| Measure | Reported result | Investment read-through |
|---|---|---|
| Net sales and other revenue | $83.1725 billion in fiscal 2025; up 3.5% from fiscal 2024, according to Albertsons’ FY2026 Form 10-K. | The extra 53rd week contributed an estimated $1.36 billion in net sales and other revenue in fiscal 2025, so the reported increase is not a like-for-like measure of underlying growth. |
| Identical sales, excluding fuel | Up 2.0% in fiscal 2025, according to Albertsons’ FY2026 Form 10-K. | A more comparable signal than total revenue, though it is not a measure of profit. Albertsons attributed growth primarily to pharmacy sales; digital contributed to the omnichannel mix, while fuel sales and net store closures were offsets. |
| Digital sales | Up 21% in fiscal 2025, according to Albertsons’ FY2026 Form 10-K. | Shows sales growth in the digital channel, but by itself does not show the channel’s profitability or how much of the increase translated into company-wide earnings. |
| Net income | $217.4 million in fiscal 2025, compared with $958.6 million in fiscal 2024, according to Albertsons’ FY2026 Form 10-K. | Reported net income was substantially lower year over year. |
| Adjusted EBITDA | $3.9015 billion in fiscal 2025, compared with $4.0047 billion in fiscal 2024, according to Albertsons’ FY2026 Form 10-K. | The company’s adjusted EBITDA was also lower year over year, even as digital sales rose. |
The contrast matters: reported revenue growth includes the effect of an additional trading week, while identical sales excluding fuel rose 2.0%. The extra-week estimate helps explain why total revenue should not be read as wholly comparable growth. The lower net income and adjusted EBITDA show that stronger sales measures did not correspond to higher results on those profit measures in fiscal 2025.
These figures describe the operating backdrop; they do not establish that Morris’s leadership or the May reorganization caused the changes. The CEO transition took effect during the period, while the May functional redesign followed fiscal 2025, so the annual results are not a clean test of the new structure’s impact.
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How to assess the standalone strategy
The announced priorities point to a business focused on customer value, merchandising, loyalty, digital engagement and productivity. To evaluate execution rather than intent, investors can track these distinct signals in subsequent company filings and earnings releases:
- Comparable growth: Compare identical sales excluding fuel with reported revenue, and account for calendar differences such as the extra week in fiscal 2025.
- Digital economics: Read digital sales growth alongside earnings and any disclosed delivery, handling or fulfillment costs. A sales-growth percentage alone does not establish digital profitability.
- Profit conversion: Follow net income and adjusted EBITDA alongside sales. Fiscal 2025 shows why revenue growth alone is an incomplete scorecard.
- Capital allocation: Distinguish the announced dividend increase and share-repurchase authorization from actual cash returned, and assess them alongside investment in operations and customers.
- Leadership follow-through: Look for sustained performance in the areas assigned to the expanded commercial, merchandising and technology portfolios, rather than treating role assignments as evidence of success.
Merger litigation remains a separate investment consideration
Albertsons’ FY2026 Form 10-K described ongoing Delaware litigation against Kroger, in which Albertsons sought damages and the $600 million termination fee. Kroger disputed Albertsons’ termination and fee claims and asserted counterclaims. The filing said discovery was ongoing and a trial was scheduled to begin October 19, 2026. These are the parties’ contested positions and the schedule reported in the filing, not a judicial determination of the Delaware claims.
The same filing reported a Washington judgment for $28.4 million in attorneys’ fees and costs against Albertsons and Kroger jointly and severally. The companies were appealing it; Albertsons said it believed Kroger was responsible under the merger agreement and had not recorded an estimated liability. The legal outcome and its financial implications were therefore unresolved in the filing.
What the leadership changes mean for ACI investors
Albertsons moved from a merger-centered story to one more dependent on standalone operating performance. Morris brought continuity from within the company, while the May 2025 reshuffle made responsibility for commercial, merchandising and technology functions more explicit. Fiscal 2025 offers encouraging growth indicators in identical sales and digital sales, but the 53rd week complicates the headline revenue comparison and both net income and adjusted EBITDA declined year over year.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe changes are best treated as a statement of management’s priorities, not evidence that results have improved. The investment case now turns on whether later reporting shows comparable growth translating into stronger earnings and cash generation, while the company navigates its capital-allocation choices and merger-related legal exposure.
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