Albertsons plans a turnaround, and Whitman will drive it. Whitman has vast experience in advertising capabilities from her extensive Silicon Valley technology expertise, large-scale digital transformation background, and explicit mandate to streamline operations using artificial intelligence. 

The company spoke about launching a comprehensive review of its operations during its second-quarter earnings call on Tuesday, where it reported revenue slid 0.1% vs. a year ago, to $18.89 billion, and adjusted net income fell about 28%, to $179 million. Same-store sales fell 0.8%.

During the past several years Albertsons invested in ecommerce capabilities, loyalty, pharmacy, retail media, own brands, and a retail media network called Albertsons Media Collective.

While Morris called them "important investments that have increased the value to our customers," she said the company must "double down on the basics. Our stores must provide the products our customers want at prices they want to see in the places and formats they love."

There are signs of a failing media business. Albertsons is looking for a new CFO, and Brian Monahan, senior vice president of Albertsons Media Collective, the grocery giant’s retail media network, left the company. The media division now reports into Emily Turner, Albertsons CMO. Turner is new to the company. She joined in mid-August from The Fresh Market’s, serving as CMO.

New hires and restructuring are only two examples of trouble amidst Albertsons consolidating internal operations as the company works to improve its advertising and sales performance. 

The hope is combining retail media and marketing will strengthen coordination across these organizations while enabling faster decision-making and creating a more connected experience for its partners. And, give it the ability to compete with other retail media networks.

Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware, called selecting Whitman as executive chair as “odd.” He told The Wall Street Journal that "there’s no doubt she’s extremely talented," but leaders in grocery typically "grow up" there. 

When an analyst during the earnings call asked Morris how long the turnaround might take, she said "we'll come back with more clarity in the fourth quarter earnings call," and the company is "moving with speed, and we have strong alignment across the organization. We're not waiting. While there are deeper dives to be done in certain areas, there are clear lines of sight on things that we can do right now to materially change the trajectory, and that's what we're focused on."

Albertsons also seeks billions from rival grocery chain Kroger for a failed merger. At least $8 billion after their deal fell through two years ago. The company is accusing Kroger leaders of making “lowball offers” to federal regulators to largely keep the most-profitable stores in the combined company, according to WSJ, which cited  court filing unsealed Monday.