Albertsons Sinks as Cost Pressures Dim Shine of Sales Surge
- Grocer warns on rising labor expenses, supply-chain pressures
- CEO sees inflation remaining at elevated levels in early 2022
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Albertsons Cos. fell the most in a month as higher labor and logistics costs complicate the grocer’s effort to cash in on rising revenue.
Wage increases and hiring tied to increased sales of fresh products pushed up employee expenses, Albertsons said Tuesday as it reported quarterly earnings. While higher prices charged to consumers helped boost revenue, inflation weighed on profitability because the company is absorbing some of the costs instead of passing them all on to shoppers -- much as Walmart Inc. and Target Corp. have said they are doing.