SAN FRANCISCO – Instacart (NASDAQ:CART), the North American grocery technology leader, has broadened its partnership with Albertsons (NYSE:ACI) Companies, Inc., launching new pickup services and a rapid delivery feature across various store banners.
The expansion includes the addition of Haggen Food & Pharmacy on the Instacart platform for same-day delivery, enhancing the convenience for customers seeking quick and flexible shopping options.
The collaboration between Instacart and Albertsons, which began in 2017, now extends Instacart pickup services to over 2,000 locations by the end of August, including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls, and Vons. This service allows customers to place orders via the Instacart App and choose a pickup window. When the order is ready, customers receive an in-app notification and can collect their groceries from designated pickup areas at the store.
Additionally, Albertsons Rapid has been introduced, offering delivery within 30 minutes from all Albertsons Cos. banner stores. This service focuses on delivering prepared foods, snacks, drinks, grocery staples, and household essentials. While Albertsons Rapid delivery comes with a fee of $2.99 per order, it is available for free to Instacart+ members.
Washington state customers can now also enjoy same-day delivery from Haggen Food & Pharmacy through the Instacart App, marking the completion of Albertsons Cos. banners partnering with Instacart for delivery services.
The expansion is a strategic move to meet the evolving needs of customers who prioritize convenience and speed in their shopping experience. Both companies emphasize their commitment to customer-centered solutions, with Instacart aiming to be the leading technology partner in the grocery industry and Albertsons focusing on fitting into customers' busy lifestyles.
For more information on the services or to place an order, customers can visit the Instacart App or the Albertsons storefront on the Instacart website. This news is based on a press release statement.
In other recent news, a Colorado judge has temporarily blocked the $25 billion merger between supermarket giants Kroger (NYSE:KR) and Albertsons following a challenge by the state's attorney general Phil Weiser. The trial is set to begin on September 30, with the attorney general arguing that the merger would impact food prices, jobs, and consumer choice.
Moreover, the companies had previously announced they were expanding their planned sale of grocery stores to gain regulatory approval, agreeing to sell an additional 166 locations to C&S Wholesale Grocers.
On the financial front, Albertsons reported a strong first quarter for fiscal year 2024, with an adjusted EBITDA of $1.18 billion. The company saw a 1.4% increase in identical sales, surpassing both the anticipated 0.5% and the FactSet consensus of 0.7%. The company's digital sales rose by 23%, and the loyalty program expanded by 15%, reaching 41.4 million members.
Several analyst notes have been released recently. Telsey Advisory Group maintained a Market Perform rating on Albertsons with a steady price target of $27.25. Roth/MKM upgraded Albertsons' stock from Neutral to Buy, setting a new price target at $24.00.
RBC Capital maintained an Outperform rating but reduced the price target to $22, and Evercore ISI maintained its "In Line" rating and $22.00 price target. These are recent developments for Albertsons that investors should consider.
InvestingPro Insights
In light of Albertsons Companies , Inc.'s (NYSE: ACI) recent expansion of services with Instacart, the company's financial health and market position are of particular interest to investors. Albertsons, trading under the ticker ACI, is currently showing some compelling figures and insights:
- The company's market capitalization stands at a robust $11.41 billion, reflecting its significant presence in the industry.
- Albertsons boasts a P/E ratio of 10.19, which is adjusted to 8.31 for the last twelve months as of Q1 2025, indicating the stock may be trading at a low earnings multiple.
- With a revenue growth of 1.36% over the last twelve months as of Q1 2025, the company demonstrates stability in its earnings.
These InvestingPro Data metrics suggest that Albertsons is a prominent player in the Consumer Staples Distribution & Retail industry, which aligns with the company's ongoing strategies to enhance customer convenience through technology partnerships.
Moreover, according to InvestingPro Tips, Albertsons is noteworthy for its low price volatility, which can be attractive to investors looking for a stable investment. Another tip highlights that the stock is trading near its 52-week low, which could present a potential entry point for investors believing in the company's fundamentals and long-term strategy.
For investors interested in a deeper analysis, there are 8 additional InvestingPro Tips available on Albertsons, which can be accessed by visiting InvestingPro. These tips could provide further insights into the company's financial health and market position. To enhance your investment research, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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