Albertsons’ long-awaited return to NYSE finally came Friday

Shares of grocer Albertsons Companies Inc. (NYSE: ACI) resumed trading on the New York Stock Exchange Friday morning after going private in 2006.

Albertsons says it matters

Albertsons, along with many of its peers, has seen a notable uptick in demand over the last few months due to the COVID-19 pandemic. Albertsons takes pride in its ability to give consumers what it needs when there are fewer dining options: fresh options, Albertsons CEO Vivek Sankaran said on CNBC’s “Squawk Alley.”

“Fresh matters — fresh matters that much more in produce and meats,” the CEO said. “And we have just seen a great lift from that.”

Revised IPO Plans

Albertsons priced its IPO ahead of Friday’s debut at $16 and the company was looking to sell 50 million shares to raise $800 million. This compares to prior plans that were confirmed in the relevant regulatory filings it wanted to sell 65.8 million shares at $18 to $20 each.

Part of the change in plans is due to market conditions where it is nearly impossible to predict at the beginning of a week what would happen by the end of the week, the CEO said. Yet the company succeeded in returning to the public markets despite a global pandemic. 

But the opening price is just one part in the company’s long-term focus.

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Changing habits

One of the biggest trends in the food and grocery industry is shifting consumer trends and preferences, especially towards digital channels like online shopping, delivery, and pick-up in store. Sankaran said the company has been investing in these segments for quite some time. In fact, its Safeway grocery store offered delivery “even before the word omnichannel came about.”

Digital will grow and become an important part of the growth story, he said. But the company still recognizes that physical stores “still matter” as offering the combination of online and offline is a “really powerful” proposition.

In terms of adapting stores to offer consumers a safe environment amid the COVID-19 pandemic, the changes needed aren’t “as much as you would think,” he said. Regardless, the company continues to experiment with changes at a time when the whole industry is in the early phases of what could prove to be long-term changes.

One of the changes could consist of new acquisitions that the company historically relied upon to add new value, he said. But for the time being, the company is focused on building value through its existing assets.

“We have a great set of assets, we have plenty of headroom there,” the CEO concluded. “But we are always eyes-open. When the right opportunities come by we will do it.”