We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Albertsons' (ACI) Omnichannel & Digitization Key to Growth
Read MoreHide Full Article
Albertsons Companies, Inc. (ACI - Free Report) looks to strengthen its delivery capabilities and payment solutions to make shopping more seamless. 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, 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.
Let’s Delve Deeper
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. Through its “just for U” loyalty program, the company has been acquiring new customers and retaining old members and incentivizing them to spend more and buy more often. During the fourth quarter of fiscal 2021, membership increased 18% year over year to reach nearly 30 million members. Also, the retention rate of active members, those who redeemed fuel or grocery rewards, was more than 90% at the end of fiscal 2021.
The company has been directing resources toward expanding digital and omni-channel capabilities 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’ fourth-quarter digital sales rose 5% year on year and 287% on a two-year stacked basis. The company expanded its Drive Up & Go curbside pickup service to more than 2,000 locations.
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 collaborations 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. Recently, Albertsons Companies expanded its partnership with Uber to include more than 2,000 banner stores nationwide. This expansion brings nearly 800 new locations to Uber Eats, including consumers in Connecticut, Indiana, New Hampshire, Utah, Vermont, and Rhode Island for the very first time.
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 advanced 44.7% in the past year against the industry’s decline of 36.8%.
Sysco, the leading global foodservice distribution company, sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 9.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sysco’s current financial year sales and EPS suggests growth of 32.6% and 124.3%, respectively, from the year-ago period. Sysco has an expected EPS growth rate of 11% for three-five years.
Medifast, which produces, distributes, and sells weight loss and health-related products, currently carries a Zacks Rank #2 (Buy). MED has a trailing four-quarter earnings surprise of around 12.9%, on average.
The Zacks Consensus Estimate for MED’s current financial-year sales and EPS suggests growth of nearly 19% and 13.4%, respectively, from the year-ago reported figure.
United Natural Foods, one of the premier grocery wholesalers delivering the widest variety of fresh, branded, and owned brand products, carries a Zacks Rank #2 at present. UNFI has a trailing four-quarter earnings surprise of 29.9%, on average.
The Zacks Consensus Estimate for United Natural Foods’s current financial-year sales and EPS suggests growth of 7.2% and 4.9%, respectively, from the year-ago reported numbers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Albertsons' (ACI) Omnichannel & Digitization Key to Growth
Albertsons Companies, Inc. (ACI - Free Report) looks to strengthen its delivery capabilities and payment solutions to make shopping more seamless. 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, 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.
Let’s Delve Deeper
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. Through its “just for U” loyalty program, the company has been acquiring new customers and retaining old members and incentivizing them to spend more and buy more often. During the fourth quarter of fiscal 2021, membership increased 18% year over year to reach nearly 30 million members. Also, the retention rate of active members, those who redeemed fuel or grocery rewards, was more than 90% at the end of fiscal 2021.
The company has been directing resources toward expanding digital and omni-channel capabilities 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’ fourth-quarter digital sales rose 5% year on year and 287% on a two-year stacked basis. The company expanded its Drive Up & Go curbside pickup service to more than 2,000 locations.
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 collaborations 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. Recently, Albertsons Companies expanded its partnership with Uber to include more than 2,000 banner stores nationwide. This expansion brings nearly 800 new locations to Uber Eats, including consumers in Connecticut, Indiana, New Hampshire, Utah, Vermont, and Rhode Island for the very first time.
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 advanced 44.7% in the past year against the industry’s decline of 36.8%.
3 Hot Stocks to Consider
We have highlighted three better-ranked stocks, namely Sysco Corporation (SYY - Free Report) , Medifast (MED - Free Report) and United Natural Foods (UNFI - Free Report) .
Sysco, the leading global foodservice distribution company, sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 9.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sysco’s current financial year sales and EPS suggests growth of 32.6% and 124.3%, respectively, from the year-ago period. Sysco has an expected EPS growth rate of 11% for three-five years.
Medifast, which produces, distributes, and sells weight loss and health-related products, currently carries a Zacks Rank #2 (Buy). MED has a trailing four-quarter earnings surprise of around 12.9%, on average.
The Zacks Consensus Estimate for MED’s current financial-year sales and EPS suggests growth of nearly 19% and 13.4%, respectively, from the year-ago reported figure.
United Natural Foods, one of the premier grocery wholesalers delivering the widest variety of fresh, branded, and owned brand products, carries a Zacks Rank #2 at present. UNFI has a trailing four-quarter earnings surprise of 29.9%, on average.
The Zacks Consensus Estimate for United Natural Foods’s current financial-year sales and EPS suggests growth of 7.2% and 4.9%, respectively, from the year-ago reported numbers.