Photo via Fast Company
Albertsons Companies is closing at least a dozen store locations across its portfolio in 2026, according to Fast Company's analysis of company data and local reports. The closures span multiple banners including Albertsons, Safeway, Vons, Randalls, Acme, and Balducci's, with the majority concentrated in California and Texas. The company operates 2,244 physical stores nationwide following a net decline of 26 locations in fiscal 2025.
The store rationalization comes after Albertsons abandoned its proposed $25 billion acquisition by Kroger in December 2024 when courts blocked the deal. During the two-year merger negotiation period, the company had deferred optimization of its store footprint, a strategy it has now resumed. Management indicated it would focus resources on markets with strong demand while closing underperforming locations, with efforts to reassign affected employees to nearby stores.
Albertsons faced significant financial headwinds in 2025, reporting a $481 million net loss in the fourth quarter—largely driven by a $774 million opioid settlement. The company saw identical-store sales growth of just 2%, though digital sales grew 21%, reflecting industry-wide pressure from big-box retailers and e-commerce competition. Stock performance has lagged considerably, down 27% over the past 12 months.
The closures highlight a critical challenge facing traditional grocers in an increasingly fragmented retail landscape. Researchers warn that store consolidation in supermarket chains disproportionately affects low-income communities, potentially deepening food desert challenges. Despite current closures, Albertsons projects a net positive store count by the end of fiscal 2026, suggesting selective expansion in high-opportunity markets.
