Albertsons Companies Inc. digital sales grew as the grocery chain operator’s number of loyalty members increased in Q2.

Overall, Albertsons net sales increased 2.0% year over year in its fiscal Q2 2025. Identical sales — those from the same stores that it operated the prior year — increased 2.2% in the same time frame. Albertsons has closed 29 stores in 2025 and expects to open nine new ones by the end of the year, according to CEO Susan Morris.

Total Albertsons sales and other revenue reached $18.92 billion in Q2. That’s up from $18.55 billion the prior year.

Morris added that Albertsons’ digital platforms are “key engines for customer acquisition, retention and engagement, driving measurable increases in sales and frequency amongst our most loyal shoppers.”

For example, Albertsons uses its loyalty program to further engage members through its digital channels, which include its mobile app. That activity then informs the data it uses to market to consumers through its retail media network, called the Albertsons Media Collective.

“Our digital experience offers a fully integrated and increasingly personalized journey,” Morris told investors on the retailer’s Q2 earnings call. “We’re not only selling food; we’re simplifying meal planning, making shopping easier and more convenient.”

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.

Albertsons digital sales in Q2

In Q2, Albertsons digital sales increased 23% year over year. And over the past three fiscal years, Morris said, Albertsons’ ecommerce sales have increased at a compounded annual growth rate of 24%.

“Our stores are community hubs, within minutes of the vast majority of our customers’ homes offering an on-demand and fresh assortment, trusted service and local relevance that online-only competitors simply cannot replicate,” Morris told investors. “Our in-store fulfillment model delivers fresher products faster with greater flexibility across pickup, delivery and in-store experiences.”

She focused on the retailer’s proximity to its customers and its loyalty program. Albertsons’ loyalty program grew more than 13% to exceed 48 million members. The data Albertsons captures through its loyalty program feeds artificial intelligence (AI)-powered features, she said.

Members are transacting more frequently, redeeming rewards more easily and spending more, according to Morris. Nearly 40% of engaged households choose the cash-off option from their rewards, which Morris said underscores the appeal of immediate value.

“Our first-party business, led by Drive Up & Go, continues to scale rapidly and represent the majority of ecommerce transactions and sales,” Morris said. By leveraging our store-based fulfillment model, we operate from a network that places us closest to the customers we serve, giving us a structural advantage in the last-mile fulfillment.”

Furthermore, she reiterated that “customers who engage across both grocery and pharmacy channels demonstrate materially higher value with increased visit frequency and broader spending across the store.”

As a result, Albertsons is continuing to invest in personalized omnichannel pharmacy and health strategies to drive new customer acquisition and convert single-channel shoppers into cross-channel shoppers.

Albertsons to use AI agents in its mobile app

“In the integrated mobile app experience, we introduced the app as a Swiss Army knife of tools that simplify planning, shopping, saving and more, whether customers shop in-store or online,” Morris said. “Since then, we’ve enhanced it with advanced personalization and AI.”

Its newest feature, she said, is called Ask AI. It uses a conversational search experience that she said “helps customers build smarter baskets faster. It enables natural cross-category discovery and personalized recommendation.”

Because of Ask AI, she said, customers don’t need to know what they’re looking for along store aisles or online. Instead, they can ask what healthy snacks are for kids, or ask the AI to offer ideas for parties.

Ask AI also ties into how Albertsons is using AI agents. Morris said Albertsons is “actively deploying AI agents to enhance core business functions, including cogeneration, price and promotion, personalization, and customer care and experience like Ask AI.”

Albertsons is also partnering with OpenAI “to use agentic AI to power merchandising intelligence,” Morris told investors on the same day that OpenAI announced partnerships with Walmart and Salesforce.

Albertsons Media Collective growth in Q2

Morris said the Albertsons Media Collective “significantly” improved year-over-year return on ad spend for its clients. She did not quantify the ROAS.

She attributed the growth to enhanced data quality, more precise targeting and faster campaign measurement. Albertsons’ retail media network uses real-time transaction data and integrates item-level sales reporting with platforms including Google, Meta and Pinterest, according to Morris. As such, she said the retail media network offers increased transparency and measurable performance for advertisers.

Among the Albertsons Media Collective’s digital marketing strategies are using:

• Shoppable recipes
• App integration
• Connected TV
• In-store digital signage

These contribute to a customer value proposition that Morris said includes enhanced loyalty, incremental and personalized promotions, and competitive pricing actions.

“This includes surgical price investments in select categories and markets, along with dynamic management of cost inflation to help stretch customers’ wallets,” Morris said.

Check back for more earnings reports. Here’s last quarter’s article on Albertsons digital sales.

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