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Technological advancements have dramatically altered the way we shop. From online ordering to flexible and swift delivery systems, consumers can choose from myriad options that best suit their lifestyle and convenience. With online grocery shopping here to stay even after the pandemic subsides, Albertsons Companies, Inc. (ACI - Free Report) looks to strengthen its delivery capabilities to make shopping more seamless.
This food and drug retailer has been making tactical changes in its business operations to adapt and stay relevant in the ever-evolving retail landscape. The company has been striving to enhance digital payment facilities alongside expanding the availability of online assortments.
Let’s Introspect
Albertsons Companies’ focus on providing efficient in-store services, enhancing digital and omni-channel capabilities, and increasing productivity has been contributing to its upbeat performance.
Efforts to bolster assortments, especially in the fresh and Own Brands categories, continue to elevate the customer experience. The company’s right assortment in each local market, loyalty program, and ease of checkout through frictionless and contactless payments have been aiding in attracting customers. The company, through its “just for U” loyalty program, has been acquiring new customers and retaining old members, as well as incentivizing them to spend more and buy more often. During the third quarter of fiscal 2021, membership increased 17% year over year to reach 28 million members.
The company has been directing resources toward expanding digital and omni-channel capabilities in order to better engage with members and provide them a convenient way to shop, whether in-store, curbside or at home. To this end, the company’s unified mobile application, digital wallet, AI chat capability, and expanded self-checkout installations enhance the customer shopping experience. Albertsons Companies’ third-quarter digital sales rose 9% year on year and 234% on a two-year stacked basis. The company expanded its Drive Up & Go curbside pickup service to 1,930 locations and offered delivery services across more than 2,000 stores.
Image Source: Zacks Investment Research
In addition to its home delivery network, the company has partnered with third-party delivery services to provide customers with the platform of their choice. It has collaborated with Instacart for rush delivery and DoorDash for the delivery of prepared and ready-to-eat offerings. The company has teamed up with Uber, whereby customers can order a full assortment of groceries on the Uber platform. The company has launched Albertsons Media Collective, a retail media network to offer partners a digital marketing platform and omnichannel solutions.
Albertsons Companies has rolled out Meal Planning and Schedule & Save digital tools. The Meal Planning digital tool offers a convenient and personalized way to plan meals and cook recipes developed by professional chefs and dietitians. The Schedule & Save feature enables auto-replenishment of grocery and household essentials that are frequently purchased at a discount. Albertsons Companies has partnered with Afresh Technologies, whereby it utilizes the latter’s AI-powered solutions to enhance the fresh offering and enable store associates to better predict demand and monitor inventory position, thereby reducing food waste.
Markedly, shares of this Zacks Rank #3 (Hold) company have climbed 13.3% in the past three months against the industry’s decline of 12%.
3 Stocks to Consider
Here we highlight three better-ranked stocks, namely, Target (TGT - Free Report) , Tractor Supply Company (TSCO - Free Report) and Sprouts Farmers Market (SFM - Free Report) .
General merchandise retailer Target currently sports a Zacks Rank #1 (Strong Buy). TGT has an expected EPS growth rate of 16.5% for three-five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Target’s current financial-year sales and EPS suggests growth of 3.5% and 6.7%, respectively, from the corresponding year-ago period’s levels. TGT has a trailing four-quarter earnings surprise of 21.3%, on average.
Tractor Supply Company, a rural lifestyle retailer in the United States, carries a Zacks Rank #2 (Buy) at present. TSCO has an expected EPS growth rate of 9.8% for three-five years.
The Zacks Consensus Estimate for Tractor Supply Company’s current financial-year sales and EPS suggests growth of 8.1% and 8.9%, respectively, from the corresponding year-ago period’s actuals. TSCO has a trailing four-quarter earnings surprise of 22%, on average.
Sprouts Farmers offering fresh, natural and organic food products currently carries a Zacks Rank of 2. SFM has an expected EPS growth rate of 7.3% for three-five years.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and EPS suggests growth of 4.5% and 6.2%, respectively, from the corresponding year-ago period’s readings. SFM has a trailing four-quarter earnings surprise of 17.9%, on average.
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Albertsons' (ACI) Omnichannel, Digitization Efforts Fuel Sales
Technological advancements have dramatically altered the way we shop. From online ordering to flexible and swift delivery systems, consumers can choose from myriad options that best suit their lifestyle and convenience. With online grocery shopping here to stay even after the pandemic subsides, Albertsons Companies, Inc. (ACI - Free Report) looks to strengthen its delivery capabilities to make shopping more seamless.
This food and drug retailer has been making tactical changes in its business operations to adapt and stay relevant in the ever-evolving retail landscape. The company has been striving to enhance digital payment facilities alongside expanding the availability of online assortments.
Let’s Introspect
Albertsons Companies’ focus on providing efficient in-store services, enhancing digital and omni-channel capabilities, and increasing productivity has been contributing to its upbeat performance.
Efforts to bolster assortments, especially in the fresh and Own Brands categories, continue to elevate the customer experience. The company’s right assortment in each local market, loyalty program, and ease of checkout through frictionless and contactless payments have been aiding in attracting customers. The company, through its “just for U” loyalty program, has been acquiring new customers and retaining old members, as well as incentivizing them to spend more and buy more often. During the third quarter of fiscal 2021, membership increased 17% year over year to reach 28 million members.
The company has been directing resources toward expanding digital and omni-channel capabilities in order to better engage with members and provide them a convenient way to shop, whether in-store, curbside or at home. To this end, the company’s unified mobile application, digital wallet, AI chat capability, and expanded self-checkout installations enhance the customer shopping experience. Albertsons Companies’ third-quarter digital sales rose 9% year on year and 234% on a two-year stacked basis. The company expanded its Drive Up & Go curbside pickup service to 1,930 locations and offered delivery services across more than 2,000 stores.
Image Source: Zacks Investment Research
In addition to its home delivery network, the company has partnered with third-party delivery services to provide customers with the platform of their choice. It has collaborated with Instacart for rush delivery and DoorDash for the delivery of prepared and ready-to-eat offerings. The company has teamed up with Uber, whereby customers can order a full assortment of groceries on the Uber platform. The company has launched Albertsons Media Collective, a retail media network to offer partners a digital marketing platform and omnichannel solutions.
Albertsons Companies has rolled out Meal Planning and Schedule & Save digital tools. The Meal Planning digital tool offers a convenient and personalized way to plan meals and cook recipes developed by professional chefs and dietitians. The Schedule & Save feature enables auto-replenishment of grocery and household essentials that are frequently purchased at a discount. Albertsons Companies has partnered with Afresh Technologies, whereby it utilizes the latter’s AI-powered solutions to enhance the fresh offering and enable store associates to better predict demand and monitor inventory position, thereby reducing food waste.
Markedly, shares of this Zacks Rank #3 (Hold) company have climbed 13.3% in the past three months against the industry’s decline of 12%.
3 Stocks to Consider
Here we highlight three better-ranked stocks, namely, Target (TGT - Free Report) , Tractor Supply Company (TSCO - Free Report) and Sprouts Farmers Market (SFM - Free Report) .
General merchandise retailer Target currently sports a Zacks Rank #1 (Strong Buy). TGT has an expected EPS growth rate of 16.5% for three-five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Target’s current financial-year sales and EPS suggests growth of 3.5% and 6.7%, respectively, from the corresponding year-ago period’s levels. TGT has a trailing four-quarter earnings surprise of 21.3%, on average.
Tractor Supply Company, a rural lifestyle retailer in the United States, carries a Zacks Rank #2 (Buy) at present. TSCO has an expected EPS growth rate of 9.8% for three-five years.
The Zacks Consensus Estimate for Tractor Supply Company’s current financial-year sales and EPS suggests growth of 8.1% and 8.9%, respectively, from the corresponding year-ago period’s actuals. TSCO has a trailing four-quarter earnings surprise of 22%, on average.
Sprouts Farmers offering fresh, natural and organic food products currently carries a Zacks Rank of 2. SFM has an expected EPS growth rate of 7.3% for three-five years.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and EPS suggests growth of 4.5% and 6.2%, respectively, from the corresponding year-ago period’s readings. SFM has a trailing four-quarter earnings surprise of 17.9%, on average.