Supermarket Giant Warns Suppliers: 'We Are Not Accepting Cost Increases Due to Tariffs'

Albertsons Tells Suppliers It Will Reject Unauthorized Tariff-Related Price Hikes

Albertsons, North America's second-largest grocery chain with over 2,200 locations, has firmly told suppliers they will not accept tariff-related price increases without prior approval. In a letter obtained by BIG, the Idaho-based company, which operates brands including Safeway, Kings, and Balducci's, made clear that it would "not tolerate any unauthorized price spikes." Nathan J Fish/Sun-News, Las Cruces Sun-News via Imagn Content Services, LLC

Company Letter Outlines Strict New Policy on Handling Tariffs

"To maintain transparency and ensure consistency across our supply chain, we are writing to clarify our Company's policy regarding how these tariffs should be handled in our ongoing partnership," the letter stated. Megan Mendoza/The Republic / USA TODAY NETWORK via Imagn Images

Albertsons Reaffirms Commitment to Affordable Pricing Amid Tariff Pressures

Albertsons emphasized its commitment to "maintaining the value proposition our customers expect" despite cost pressures from new tariffs imposed by President Donald Trump. The White House / Wikimedia

Suppliers Must Give 90 Days' Notice and Proof Before Cost Increases Are Considered

The company warned suppliers not to pass tariff costs onto Albertsons without permission, adding that "with few exceptions, we are not accepting cost increases due to tariffs." Suppliers must provide at least 90 days' notice and evidence of genuine cost increases before any adjustments will be considered—a review process that could take up to a month. nrd / Unsplash

Trump's Tariffs Remain in Effect Despite Temporary Pause on Some Reciprocal Measures

Trump has temporarily paused some of his reciprocal tariffs until July but maintained a 10% tariff on most goods and significantly higher rates on vehicles, steel, and imports from China, which faces a staggering 145% tariff. Gage Skidmore / Wikimedia

Critics Warn of Potential Supplier Struggles for Albertsons

Despite the tough stance, some analysts have criticized Albertsons’ policy as unrealistic. Matt Stoller of the American Economic Liberties Project argued that “suppliers will go out of business if they can’t cover those increased costs,” calling the letter an example of “arrogance” and reflective of Albertsons’ market power. Joel Angel Juarez/The Republic / USA TODAY NETWORK

Albertsons CEO Vivek Sankaran to Retire May 1 as Leadership Transition Looms

Albertsons’ leadership is also undergoing a transition. CEO Vivek Sankaran, who led the company through a significant period of evolution, is set to retire on May 1. Executive Vice President and Chief Operations Officer Susan Morris will take over as CEO.

Sankaran said in March, "It has been a privilege to lead Albertsons Cos. through a critical period of evolution and I couldn’t be more confident in the Company’s future with Susan at the helm." Taya Gray/The Desert Sun / USA TODAY NETWORK

Company Highlights Affordability Efforts in Public Statement

The company said that keeping food affordable remains a focus, describing itself as “committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood.” Photo by Maria Cortes Gonzalez/El Paso Times / USA TODAY NETWORK via Imagn Images

Albertsons’ Attempted Merger With Kroger Blocked by FTC

Albertsons recently attempted a major merger with Kroger to better compete with giants like Walmart and Costco, but the deal was blocked by the Federal Trade Commission. Joshua L. Jones / USA TODAY NETWORK via Imagn Images

FTC Warns Kroger-Albertsons Merger Would Harm Competition in Grocery Sector

The FTC argued that the merger would harm competition, describing the companies’ divestiture proposal as "a hodgepodge of unconnected stores, banners, brands, and other assets." Fry1989 / Wikimedia