Albertsons up for sale?

The grocery store chain may very well be.

Boise-based Albertsons Inc. announced Friday it is considering putting the company up for sale, sending the company's stock up 26 percent at one point in the day.

Larry Johnston, chairman and chief executive officer of Albertsons, said in a statement sent to employees that the company's board of directors "is exploring strategic alternatives to increase shareholder value, including a possible sale of the company."

Albertsons, the nation's second-largest grocery chain, has hired Goldman Sachs & Co. and The Blackstone Group as financial advisers while the board explores its options. Company officials declined to comment further until the board approves what it called a "definitive transaction."

A sale could mean the company headquarters would leave Boise, where the company began 66 years ago and now employs about 2,000 people. Albertsons has 2,500 stores in 37 states across the United States and employs about 240,000 workers. The company also operates Acme, Shaw's, Jewel-Osco, Sav-on Drugs, Osco Drug and other stores.

With the news of a possible sale, Albertsons stock surged 26 percent at some points during the day and closed at $23.05 Friday, up 11.19 percent from the closing price Thursday. More than 57.2 million shares of the company's stock were traded Friday, well above the daily average of 3.7 million shares.

This news continues to show how much discount retailer Walmart has changed the grocery business. With Winn Dixie Stores once giant in the industry in bankruptcy and now Albertsons up for sale, one can't help see the affect Walmart has had. I don't see the discount giant as the bogeyman much of the MSM see it as. Still one has to wonder if these industry changes will be beneficial for consumers.

All day Picnic- Basil's blog