Dive Brief:
- Albertsons is on a mission to scale AI across the enterprise, which it includes as part of its $2 billion in capital expenditures for fiscal year 2026. The grocer is already seeing tangible gains from the technology, CEO Susan Morris said during the grocer’s Q4 2025 earnings call Tuesday.
- AI-demand forecasting and computer vision are lowering inventory and fulfillment costs within the supply chain while improving product availability and quality, Morris said. The technology is also driving merchandising improvements as automated insights and intelligent pricing tools bolster decision-making.
- The grocer’s generative AI scheduling tools are another key use case for the company, helping improve labor forecast accuracy, Morris told investors. “Technology and AI fit at the center of our transformation,” she said.
Dive Insight:
Albertsons is ramping up technology investments as it faces heavy competition from other grocery store chains also on the hunt for AI productivity, efficiency and revenue gains. Its primary structural investments focus on four initiatives — digital customer experience, merchandising intelligence, labor and supply chain optimization.
The grocer invested $1.84 billion in capital expenditures in fiscal year 2025 to advance the company’s AI and technology capabilities, modernize its store fleet and improve supply chain operations, CFO Sharon McCollam said during the earnings call. The company is anticipating increased capital expenditures between $2 billion and $2.2 billion in fiscal year 2026, largely driven by its technology agenda.
“Digital continues to be a powerful engine as we expand our base of loyal, engaged customers and scale the business in a disciplined and increasingly profitable way,” McCollam said.
As Albertsons funnels capital into AI, grocers and retailers including Walmart, Kroger and Sprouts Farmers Market are also investing in agentic AI, AI-enabled shopping assistants and other tools to improve operational efficiency and customer experience. Last year, Walmart developed super agents to improve operations and pointed to its AI-enabled shopping assistant Sparky as an early AI win.
Albertsons’ AI investments are also paying off, Morris said, citing increased customer uptake of the grocer’s AI-enabled shopping assistant, as well as tools improving perspective on stock in the supply chain and promotional materials in merchandising to help manage company spend.
“The environment remains dynamic and competitive intensity across food retail is not easing, but our strategy is built for this reality,” Morris said.
Although AI and technology are underpinning the grocer’s digital transformation, Morris said Albertsons is using the technology to amplify, not replace, its employees.
“Above all, our confidence in the year ahead comes from our people,” Morris said. “As we advance our transformation, we will continue to invest in the tools, technology and support systems to help you do your best work.”
