Please ensure Javascript is enabled for purposes of website accessibility

Why Albertsons Stock Surged Today

By Joe Tenebruso – Aug 10, 2021 at 5:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The supermarket chain's digital transformation efforts could soon receive a boost.

What happened

Shares of Albertsons (ACI 1.12%) jumped 17% on Tuesday after the grocer announced a key hiring. 

So what

Sharon McCollam will become Albertsons' president and chief financial officer on Sep. 7. She will replace Bob Dimond, who is retiring but will serve as an advisor until February 2022.

McCollam previously served as Best Buy's (BBY -1.41%) executive vice president and CFO. She is widely credited with helping to spearhead the electronics retailer's "Renew Blue" turnaround program, which helped to bolster Best Buy's e-commerce capabilities and revive its struggling store base.

A view of a grocery store aisle through a transparent laptop screen beside a miniature shopping cart.

Image source: Getty Images.

McCollam will oversee Albertsons' financial, technology, and supply-chain operations, among others. She will work closely with CEO Vivek Sankaran in areas such as corporate strategy and the company's increasingly important digital initiatives.

"We are entering the next phase of our transformation, centered on building deeper relationships with customers through data, technology, and connected omnichannel solutions," CEO Vivek Sankaran said in a press release. "Sharon has done just this throughout her career."

Now what 

McCollam will certainly have her hands full. She's essentially being tasked with going head-to-head with e-commerce heavyweights Amazon, Walmart, and Target -- all of which have been investing heavily in their online grocery operations. 

Still, McCollam is undeterred by this fierce competition. "I could not be more excited to take on this challenge," she said.

Judging by Albertsons' share-price gains today, investors appear to like her chances of success.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso owns shares of Amazon and has the following options: long January 2023 $2,400 calls on Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Albertsons Companies, Inc. Stock Quote
Albertsons Companies, Inc.
ACI
$20.67 (1.12%) $0.23
Best Buy Stock Quote
Best Buy
BBY
$81.23 (-1.41%) $-1.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.