Leading player with good market share in grocery retail, focusing on fresh food offerings, online capabilities, and strong private-label penetration. Diversified portfolio of supermarket banners, with leading share of core markets, well-maintained store base, and good distribution and manufacturing capabilities. We expect digital sales growth of more than 50% in fiscal 2020 from 39% in fiscal 2019, with strong growth from Just For U loyalty program enrollments and digital coupon redemptions. Operates in highly competitive and fragmented grocery market undergoing many operational changes amid the COVID-19 pandemic. Longer-term margin pressure from competitors to invest in e-commerce and promotional selling as well as exposure to high-minimum-wage states including Maryland, Washington, and especially California. Material multi-employer pension underfunding obligations elevates leverage. Albertsons
