The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
When Albertsons scuttled its plan to merge with Kroger last month, CEO Vivek Sankaran declared that it was primed to “start this next chapter in strong financial condition.” But the grocer’s disclosure this week that it is letting go of an unspecified number of corporate workers is a sharp reminder that the road ahead will not be paved with gold.
Sankaran hinted that trouble was brewing for employees on Jan. 8, when he said during an earnings call that Albertsons would strive to shave $1.5 billion in costs over the coming three years as it looks to drive “transformational productivity.” Albertsons CFO Sharon McCollam, meanwhile, told investors on the call that the company has been hammering out a strategy to boost efficiency for two years: “We didn’t just come and lay out a plan today.”
Albertsons warned in testimony during the federal trial over the merger last year that it might eliminate jobs and close stores if it could not combine with Kroger. This underscores the fact that the company had been counting on the deal to keep it financially healthy — and was prepared to take quick action if it fell through. More layoffs, store closures and other cost-cutting measures are likely in Albertsons’ future as the company reaches for its lofty efficiency goal.
Sankaran added during last week’s earnings call that Albertsons plans to save money in part by “rebalancing our onshore and offshore activities.” Indeed, Albertsons runs technology operations outside the U.S., and a spokesperson confirmed to Boise Dev earlier this week that it plans to shift work performed by recently laid off workers overseas.
After betting its future on a merger plan that it knew was fraught with risk, Albertsons is dealing with the unenviable task of convincing investors it is on solid financial footing even as it takes aggressive steps to save money. The question now is: What will be left when the company is finished reinventing itself?
In case you missed it
Wegmania heading to Pittsburgh
Wegmans announced Monday plans for its first store in the Pittsburgh area. The approximately 115,000-square-foot store will be part of a mixed-use development adjacent to the UPMC Lemieux Sports Complex in Cranberry Township, Pennsylvania. Wegmans said it has not yet determined a timeline for construction and opening, but does plan to hire 400 to 500 employees for the store, “with the majority hired locally.”
Aldi doesn’t want people to forget it’s a discounter
As the grocery chain plugs away at its U.S. expansion, Aldi put out a “price leadership” report breaking down how much money it helps grocery shoppers save. Unsurprisingly, the chain says it offers “the lowest prices of any national grocery store.” Aldi says it saves U.S. consumers $8.3 billion annually, translating to nearly $4,000 annually for a four-person household, based on a survey of nearly 2,000 of its shoppers.
Aldi even broke its savings research down to the market level to make the case for how much consumers in Chicago or Miami or Los Angeles can save when they buy Aldi private brands.
Sneak peek inside Save A Lot’s MFC with Fabric
During a recent trip to New York City, Anne Mezzenga and Chris Walton, co-CEOs of Omni Talk, took a tour of Save A Lot’s automated micro-fulfillment center in Brooklyn — and shared photos of the facility on LinkedIn.
The 7,000-square-foot facility, which is located inside a warehouse that is over 100 years old, is within a 30-minute reach of 2 million people, Fabric Vice President of Sales Jonathan Morav told Omni Talk: “When you start to think about solving for on-demand grocery, proximity to your end customer is absolutely key.”
Impulse find
Wily coyote goes viral for hiding in an Aldi
A video of a coyote inside a Chicago Aldi store quickly made its way around the internet this week.
The coyote first ran through the store’s produce section and then got cornered by city police officers behind items on a refrigerated shelf, CBS reported. The now widely circulated video, which has received 8.3 million views on X, formerly known as Twitter, alone, shows an officer pulling the coyote out by its tail — and the animal then hightailing it back into the refrigerator shelves again.
“Responding animal control officers did eventually take the coyote into custody,” CBS noted.
ABC7 reported Monday that there weren’t any reported injuries to the coyote, and officials told the station that the coyote will go to the Flint Creek Wildlife Rehabilitation group to confirm it is OK before potentially releasing it back into the wild.
The Aldi’s on Kedzie in Humboldt Park
— Eddie (@EddieBarstool) January 13, 2025
I was prepared to see him pull out a opossum or a raccoon. Did NOT expect that pic.twitter.com/4CbaWkjhwy
