Albertsons Prepares for Potential Covid-19 Restrictions

Nationally, new Covid-19 cases are on the rise despite nearly 60% of the adult population having been vaccinated. The U.S. was averaging about 40,240 new cases a day as of July 23, up from about 27,440 cases the week prior, according to the Centers for Disease Control and Prevention. The Delta variant accounts for about 83% of Covid-19 cases in the U.S.

Grocers have wrestled with enforcing mask mandates for customers and staff over the past year, as some consumers refused to use coverings or wear them properly. This left store employees to manage confrontations over policy enforcement. Many retailers eased rules in the spring and haven’t changed their policies since.

Boise, Idaho-based Albertsons, whose grocery chains include Safeway and Jewel-Osco, is also studying mask and vaccine mandates, Mr. Sankaran said.

The CDC recommended this week that vaccinated people resume wearing masks indoors in some parts of the country. In May, it said vaccinated people needn’t wear masks or physically distance in most outdoor and indoor settings. Albertsons and other retailers said then that they no longer required face coverings for fully vaccinated shoppers and employees.

Mr. Sankaran said, If patterns hold, cities, counties and states are likely to issue new mandates and Albertsons would comply. At a national level, the grocer will examine the CDC’s latest recommendation and watch how the number of cases changes.

“We will do what is right,” Mr. Sankaran said.

Like many businesses, Albertsons has focused on incentives to encourage vaccinations among employees. More people are getting inoculated, Mr. Sankaran said, driven by growing anxiety over the Delta variant. California state and New York City said that they would require vaccinations for their workers. President Biden is considering a similar policy for federal workers.

Albertsons, the second largest grocer behind Kroger Co., on Thursday reported quarterly sales growth and profits that beat Wall Street expectations. Same-store sales grew 16.5% on a two-year basis, but declined 10% from a year ago when the pandemic and lockdowns jolted consumers. It posted an adjusted profit of $518 million. Its shares are up about 5% Thursday morning.

Grocery sales have slowed since the start of the pandemic, but remain much higher than before the health crisis as many people work remotely and cook more at home. Shoppers are buying more items in-store, Mr. Sankaran said, adding that consumer spending remains strong and people continue to buy premium products in the meat, seafood and produce categories.

Write to Jaewon Kang at [email protected]