US supermarket group to look at strategic alternatives
Albertsons is considering putting itself up for sale, as well as other alternatives, as the second-largest supermarket chain in the US contends with disappointing sales.

The retailer, which is second only to Kroger, operates about 2,500 stores including Albertsons, Acme, Shaw's, Jewel-Osco and Sav-On Drugs. It said it is interested in pursuing 'strategic alternatives' to increase shareholder value.

Albertsons said it would not comment on developments until its board approves a definitive transaction.

In June, Albertsons reported continuing recovery in the southern California market following a damaging four-and-a-half month strike by 59,000 workers last year and a sharp increase in earnings following the acquisition of Shaw's.

However, the supermarket group has struggled in the face of increasing domestic domination by Wal-Mart and the rise of niche regional food store operators around the US.

A number of Albertson's peers have closed large parts of their store network or gone bankrupt in the last two years as the competitive US grocery market shakes down.

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