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Albertsons Sees Growth From Digital and Pharmacy Investments

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Courtesy of Albertsons

Albertsons Pharmacy Strategy Fuels Growth Through Digital Innovation

Investments in technology and health services drive first-quarter success

Albertsons has seen notable growth in both digital and pharmacy sectors, thanks to a well-executed Albertsons pharmacy strategy. In Q1 2025, the grocery giant reported a 2.8% increase in identical store sales. Pharmacy and ecommerce investments played a major role in this success.

The company, based in Boise, Idaho, also achieved $1.11 billion in adjusted EBITDA. These gains reflect its long-term strategic focus on digital engagement, technology, and customer loyalty.

Digital and Pharmacy Segments Drive Sales Momentum

Digital revenue grew by 25% and now accounts for 9% of total grocery sales. Albertsons attributes this to its user-friendly mobile app and digital integration.

The app now includes advanced AI features, such as a shop assist tool. This allows seamless communication between customers and in-store associates. The Albertsons pharmacy strategy includes omnichannel access and improved customer experiences, both online and offline.

CEO Susan Morris explained that Albertsons is creating a connected, convenient experience. Customers now shop more often and explore new services.

Loyalty Program and AI Boost Customer Retention

Customer loyalty is another growth area. The “for U” program saw a 14% increase, reaching 47 million members in Q1. One-third of these households use the new “cash off” feature, which turns rewards into instant savings.

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Upgraded in 2024, the loyalty program continues evolving. Morris noted new partnerships and benefits will launch throughout 2025. These changes aim to increase wallet share and improve marketing opportunities.

Digital shoppers use Albertsons’ tools three times weekly. In-store features include meal planning, product finders, and real-time assistance.

Pharmacy Investments Drive Competitive Advantage

Albertsons’ pharmacy division grew by 20% year-over-year. As rivals like CVS and Walgreens close locations, Albertsons expands access and services. This move is part of the broader Albertsons pharmacy strategy, focused on long-term loyalty and customer acquisition.

The pharmacy division now plays a central role in the “Customers for Life” vision. The company continues to launch omnichannel features to bring grocery and health offerings closer together.

Future Outlook: Seamless Shopping and Continued Expansion

Albertsons plans to deepen its digital transformation across all platforms. This includes enhancing ecommerce penetration and increasing digital app usage. While slightly behind industry peers in ecommerce adoption, Albertsons sees this as a big opportunity.

The company also plans to simplify services, expand loyalty benefits, and strengthen its pharmacy services. These efforts align with its mission to grow engagement and improve customer experiences.

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