Albertsons, a major grocery chain with 123 stores in California, announced plans to lower prices for shoppers through increased investments and operational restructuring, according to CEO Susan Morris during a Thursday earnings call. The moves aim to boost customer traffic, sales volume, and loyalty within the state, where grocery costs rank among the highest in the nation.

To enhance efficiency and accountability, Albertsons is consolidating its 11 divisions into four regional units. Morris said this reorganization is intended to improve execution in critical customer-focused areas such as fresh food service, store standards, local merchandising, and community engagement.

Central to the price reduction strategy is an effort to shift part of the cost burden onto suppliers. Morris emphasized a more direct approach with manufacturing and vendor partners, particularly concerning the centralization of center-store items, expecting suppliers to contribute more significantly to cost savings.

California shoppers face some of the nation’s steepest grocery prices, with average weekly spending on groceries reaching $127 in 2025—a figure surpassed only by Hawaii and Alaska. The high costs have contributed to the reputation of the state’s grocery sector, which includes expensive chains such as Erewhon, Bristol Farms, and Gelson’s, particularly in Los Angeles.

Albertsons is simultaneously preparing for leadership changes, as President and CFO Sharon McCollam plans to retire later this year. The company is seeking a successor with strong financial expertise and a strategic vision to foster sustainable growth and enhance long-term value.

In addition to its internal changes, Albertsons has recently faced legal scrutiny in California alongside other large retailers like Walmart and Sam’s Club. Residents filed a lawsuit accusing these companies of using AI-based algorithms to manipulate gasoline prices, alleging an illegal price-fixing scheme that has affected consumers across the state.