10 Best Retail Stocks To Invest In

4. Albertsons Companies, Inc. (NYSE:ACI)

Number of Hedge Fund Holders: 58

Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets,  Acme, Carrs, and more.

The company experienced substantial growth in its pharmacy operations and digital sales in fiscal Q2 2024, primarily attributed to investments in its Customers for Life strategy. Albertsons Companies, Inc. (NYSE:ACI) also drove solid year-over-year growth in its omnichannel shoppers and loyalty members, along with accelerated growth in its Albertsons Media Collective.

Although the company has new and ongoing productivity initiatives, its operations are expected to see headwinds continuing into the balance of fiscal 2024. These headwinds are likely to be related to investments in associate wages and benefits, an increasingly competitive backdrop, and an increasing mix of its pharmacy and digital businesses, which carry lower margins.

Net sales and other revenue for the company was $18.6 billion in fiscal Q2 2024, compared to $18.2 billion in fiscal Q2 2023. This increase was driven by a 2.5% growth in identical sales, with strong growth in pharmacy sales driving the identical sales increase. Alberston Companies Inc.’s (NYSE:ACI) digital sales grew by 24% during fiscal Q2 2024. The company takes the fourth spot on our list of the 10 best retail stocks to invest in.