As the former head of eBay and Hewlett Packard, Meg Whitman, at least at first glance, seemed like an odd choice to serve as executive chairman for Albertsons.
Grocery chains, however, have become, or are at least on the path to becoming, technology companies that happen to sell groceries. What was once a business based on having stores located near your customer base has increasingly become about operating efficiency, digital sales, and artificial intelligence (AI).
Viewed through that lens, Whitman’s appointment makes more sense, and she hit the ground running during the company’s second-quarter earnings call. She acknowledged technology early on in her remarks.
“We’ve built a strong e-commerce platform and see AI as critical to our success,” she said.
Then, she dropped the hammer.
“Our performance has fallen short. Sales and earnings growth have not met our expectations. Market share trends have lagged, and despite many individual successes across the business, we’re not delivering results consistent with the quality of our assets. We must turn things around,” she added.
Meg Whitman plans an Albertsons turnaround
Whitman, it should be noted, is not the CEO of Albertsons. Susan Morris holds that job.
That did not stop Whitman from making it clear that major change is coming.
“The first step is to take a hard look at the business, challenge assumptions, and decide what actions create the greatest value for customers and shareholders. That includes looking at opportunities to run the core business much better by improving the operational model and decision-making,” Whitman said.
The executive chairman then essentially promised cuts, although she did not offer specifics.
“It also includes improving the cost structure, reducing price for customers, and resetting priorities for improved capital allocation. We must also take a close look at our portfolio of banners, markets, assets, and businesses as well as at potential strategic actions we can take to enhance shareholder value,” she added.
Whitman made it clear that the current company was not meeting her expectations.
“We must move faster to reduce costs, reinvest much of those savings into lower prices, improve the store experience for customers, grow traffic and share in core markets, drive ID sales and revenue, and improve returns for shareholders. Albertsons must become a simpler, more focused company that gets the basics right every day,” she said.
Whitman essentially put the entire company on notice.
“Everything should be on the table as we figure out how Albertsons should be structured to better compete in the years ahead,” she shared.
Albertsons’ sales dropped
Net sales and other revenue decreased 0.1% to $18,894.7 million for the 12 weeks ended Sept. 12, 2026, from $18,915.8 million during the 12 weeks ended Sept. 6, 2025.
“This decrease was driven by a decline in identical sales of 0.8%,” the company shared in its earnings release. “Pharmacy and digital remained areas of strength, with pharmacy sales continuing to grow despite ongoing Inflation Reduction Act headwinds and digital sales increasing 11% during the second quarter of fiscal 2026. The decrease in net sales and other revenue was partially offset by higher fuel sales.”
Morris’ comments during the earnings call suggested that cuts are coming.
“Over time, we launched a number of initiatives for good reasons and with the right intentions. Upon reflection, however, too many initiatives, processes, and layers of complexity have built up, slowing the organization and increasing the cost of running our business,” she said.
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Like her counterpart at Kroger, Gregory Foran, Morris said that costs needed to come out of the business to lower prices for customers.
“Going forward, our focus will be much narrower. Our resources will be concentrated on the right projects that most accelerate our results, and our expectations and accountability for results will be significantly higher. We must deliver more consistently for our customers. Price matters. Promotions matter. Freshness matters,” she added.
Morris also said the company now plans $2 billion in cuts over three years, up from a previous goal of $1.5 billion.
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Whitman has a reputation for turnarounds
While Whitman led turnaround efforts at both HP and and eBay, not everyone praised her people skills.
“Perhaps face to face over coffee or even in the boardroom, she comes off differently. But in the public spotlight, she comes off as brash and abrasive, qualities that are ill-suited for the public face of a company desperately needs a charismatic leader to inspire the folks at HP, not to mention charm the public, the press, investors, and partners,” Infoworld wrote at the time of her appointment to lead HP.
Her results, however, have been strong.
“Two and a half years later, HP’s turnaround is still a work in progress, but its stock has rebounded strongly since hitting bottom a year after Whitman took over, and her plan to split the iconic computer maker into two companies garnered high marks both on Wall Street and in Silicon Valley,” Stanford’s Graduate School of Business shared in an interview with Whitman.
Morris promises more cuts
Like Whitman, Morris made it clear that nothing at Albertsons was safe.
“Finally, we’re taking a disciplined look at our portfolio. Albertsons has strong businesses, strong banners, and valuable assets, but not all assets create the same value. Going forward, we’ll be more focused,” she said.
She did not specifically address closing stores, but she heavily suggested it.
“We’ll invest where we have a clear path to win. “We’ll exit areas that are underperforming,” she added.
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