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Albertsons accelerates digital growth in 2025, investing in media, tech, and loyalty to boost customer engagement and long-term value creation.
Table of Content
Albertsons is entering 2025 with a bold vision and a clear digital-first strategy. Following a strong Q4 performance, after a modest Q3, that exceeded revenue expectations, the food and drug retailer operating 2,270 stores across 34 states and 20 banners is doubling down on investments to accelerate its digital transformation. Central to this momentum is the expansion of the Albertsons Media Collective, along with a focused push on digital engagement, loyalty, and omnichannel capabilities. With strong tailwinds from pharmacy and e-commerce growth, the company’s "Customer for Life" strategy is gaining traction. 2025 is being positioned as a pivotal year to scale four core digital platforms to enhance personalization, deepen customer relationships, and unlock long-term value.
“Driving customer growth and engagement through digital connection, growing our Albertsons Media Collective, enhancing the customer value proposition, modernizing capabilities through technology, and driving transformational productivity. As we outlined last quarter, to engage customers, we've continued to invest in growth through four digital platforms,” said Susan Morris, CEO, Albertsons.
Q4 2024 Performance
Net Sales
Total net sales for Q4 2024 reached $18.8 billion, a 2.5% year-over-year (YoY) increase.
Identical (ID) Sales
ID sales grew in the range of 1.5% to 2.5%, in line with inflation trends of 1.5% to 2%.
Pharmacy Sales
Achieved 18% YoY growth
Digital & E-Commerce Sales
Digital sales grew 24% YoY in Q4.
E-commerce now represents over 8% of total grocery revenue.
Loyalty Program
Loyalty membership reached 45+ million, a 15% YoY increase.
Active engagement rose 12%
Store Expansion & Remodels
In FY24:
11 new stores opened
127 stores remodeled
Automation and Supply Chain
Targeting 30% automation in distribution volume by end of FY25
Productivity Goals
Targeting $1.5 billion in savings.
Quarter-over-Quarter (QoQ) Performance
Albertsons surpassed revenue forecasts set in Q3 2024.
Q4 performance was driven by the ongoing success of its “Customer for Life” strategy, pharmacy growth, and investments in omnichannel capabilities.
Strategic Initiatives
Loyalty and Digital Engagement
Albertsons' loyalty engine is firing on all cylinders. In Q4 2024, loyalty membership grew to over 45 million, marking a 15% year-over-year increase, while active engagement rose 12%. Much of this growth stems from the company’s transition to the "Albertsons for U" platform, which simplifies the rewards experience with features like real-time coupons, in-store geolocation, and personalized shopping lists. As we highlighted in our article, Albertsons Drives 34% Loyalty Growth with Customer-Centric Digital Strategies, this shift has played a key role in modernizing how shoppers interact with the brand.
One of the most popular features has been the "Cash Off" rewards option, now used by 20% of engaged households, appealing directly to value-conscious shoppers looking for immediate savings. The app not only boosts customer convenience and loyalty but also feeds valuable behavioral data into the Albertsons Media Collective, powering more personalized marketing. And the momentum isn’t slowing, Albertsons plans to continue expanding the program in 2025, with new strategic partnerships to deliver even more value. As Grocery Doppio’s shopper study shows, 43% of shoppers want personalized deal notifications, and Albertsons is clearly listening and delivering.
AI-Powered Transformation
Albertsons is doubling down on AI to drive smarter, faster decisions across the business. From e-commerce and store operations to pharmacy, merchandising, supply chain, and media, the company is building a real-time, AI-ready data platform to fuel intelligent automation and personalization. Whether it's helping merchants fine-tune pricing, offering shoppers personalized product recommendations, or using Vision AI in-store to reduce shrink and improve product quality, AI is at the center of Albertsons’ productivity transformation. As we noted in Grocery Doppio’s "State of AI in Grocery 2024" report, AI has the potential to unlock $136 billion in value by 2030, especially in high-impact areas like supply chain, merchandising, and marketing and Albertsons is already moving to tap into that value.
Key Highlights
Operational Efficiency and Tech Modernization
Albertsons has identified 2025 as a pivotal investment year, with a strong focus on technology-led transformation to deepen customer relationships and enhance operational agility. The company is prioritizing its four key digital platforms: loyalty, e-commerce, pharmacy, and integration of mobile app to drive meaningful engagement across every shopper touchpoint. By advancing its loyalty strategy through personalized rewards, scaling its e-commerce footprint, and enriching the pharmacy experience, Albertsons aims to increase customer lifetime value while generating high-quality digital inventory for the Albertsons Media Collective. At the core of this strategy is a commitment to building industry-leading technology infrastructure, including a modern cloud network and real-time analytics capabilities, designed to optimize national buying, streamline operations, and accelerate data-driven innovation. With Q4 closing at 25.4% digital sales penetration, Albertsons is confident in reaching its 30% target, supported by stronger brand partnerships, enhanced measurement models, and consistent omnichannel execution.
Future Outlook
Beyond fiscal 2025, Albertsons expects the strategic investments made this year to lay the foundation for sustained, long-term growth. These efforts are designed to align with the company’s growth algorithm of 2%+ identical sales. As digital platforms mature, customer engagement deepens, and operational efficiencies scale, Albertsons anticipates gradual top-line acceleration in the second half of 2025 particularly within its core grocery business.
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