Albertsons On Sale in Aisle Five

Albertsons Inc. (Boise, Idaho), the nation’s second-largest grocer, has put itself up for sale as it grapples with intense competition from Wal-Mart and other chains.

The retailer, which operates stores under the Albertsons, Jewel-Osco and Shaw’s banners, has begun to explore strategic options but added that no deal was guaranteed.

Early speculation suggests that European supermarket operations, like Tesco and Carrefour, could see this as an opportunity to get a toehold in the lucrative United States market. American companies were considered unlikely to join in the bidding because they already have stores in many of the markets Albertsons serves and would face a tough antitrust battle.

American grocers have been hard hit by Wal-Mart's rapid expansion of supercenters. Albertsons said in June that quarterly profit nearly tripled as sales rebounded from last year's California strike, but analysts have said the chain is not doing enough to address competition in groceries.