Albertsons is factoring in rising fuel costs into its outlook as it seeks to grow its fulfillment and delivery.
On Albertsons’ fiscal Q4 2025 earnings call with analysts, executives shared how the retailer is approaching inflation and overall cost increases.
Speaking broadly about inflation first, CEO Susan Morris said Albertsons still expects industry inflation on food to be around 2%. She noted that Albertsons has “not been passing through that inflation at the 2% rate.”
But the U.S. and Israel’s war on Iran has impacted fuel prices globally. Albertsons’ fiscal Q4 2025 ended Feb. 28, 2026. That was the same day that the U.S. and Israel began their war on Iran. Because of supply chain disruptions resulting from the war, the price of a barrel of crude oil reached $112 in April. On Feb. 3, it was about $60, according to historical data from Trading Economics.
The war has led carriers to implement shipping surcharges. Similarly, Amazon has announced fuel and logistics surcharges for sellers using its fulfillment options.
As of the end of its fiscal 2025, Albertsons operates 405 fuel stations in addition to its 2,244 retail stores. It also operates 22 distribution centers and 19 manufacturing facilities. Albertsons operates under 22 brand banners across 35 states and Washington D.C.
Albertsons is currently 18th in the Top 2000 Database. The database ranks North America’s top online retailers by their annual ecommerce sales and more. Albertsons owns and operates its namesake store, Albertsons, as well as brands including Carrs, Haggen, Jewel-Osco, Lucky, Safeway and more.
How Albertsons is handling rising fuel costs tied to war abroad
Providing perspective on fuel, Morris highlighted the pressure on consumers.
“We do see units remaining pressured across the industry, and that pressure certainly is unevenly distributed,” Morris said. “What we’re seeing is increasing pressure on the lower-income cohorts. It’s reflected in ongoing affordability changes.”
In its outlook for the year, Albertsons has “included the pressures that higher fuel costs will provide related to our transportation and the distribution expenses,” according to chief financial officer Sharon McCollam.
McCollam referred to the war as “the Iran situation” and said, “obviously, we’re expecting that — hoping that this comes to an end in some shorter period of time. If that continued throughout the year, there could be some incremental pressure, but we are very comfortable right now with what we’ve included in our outlook.”
McCollam added that, as of Albertsons’ earnings call on April 14, the retailer has adequately addressed fuel within its forecast.
“We are assuming that this conflict is going to end in a reasonable period of time. And assuming that’s the case, we’re expecting — let’s think of it in the near flat trajectory for 2026,” McCollam said.
Morris also noted that Albertsons anticipates “an uplift in our fuel rewards program moving forward.”
Omnichannel sales drive fulfillment growth at Albertsons
Morris said Albertsons’ store-based fulfillment model benefited the retailer in Q4. The proximity of its stores to consumers has enabled speed and efficiency at scale, according to Morris.
She said Albertsons fulfills more than half of its digital sales in less than three hours. “The vast majority” of Albertsons online customers are eligible for “30-minute flash delivery,” she said. That’s Albertsons’ fastest growing digital segment, Morris added.
She also called Albertsons’ third-party business “a convenient choice for some customers” and “a gateway for introducing new customers to our first-party offering.”
The third-party business, in part, refers to Albertsons’ expanded Uber Eats partnership. In November, the companies announced their connecting membership rewards.
In 2017, Albertsons began using Instacart for grocery-delivery services. Then, in 2024, it added Grubhub as another national delivery partner.
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