Albertsons shares fell sharply on Thursday after the grocery chain said weaker spending in its core business is expected to pressure both sales and earnings. The stock drop followed the company’s decision to lower its outlook for fiscal 2026, reflecting a softer demand environment.

The company signaled that shoppers are becoming more careful with their grocery budgets, a trend that appears to be weighing on store performance. That more restrained consumer behavior has become a key concern for retailers, especially those exposed to everyday household spending.

Investors reacted negatively to the updated forecast, sending Albertsons stock down by nearly 15% in early trading. The market response underscored how closely investors are watching signs of slowing demand across the grocery sector and how even defensive consumer businesses can come under pressure when spending weakens.

The revised outlook suggests Albertsons expects a tougher operating backdrop ahead as it navigates a more price-sensitive customer base. The company’s update adds to broader concerns about how cautious consumer spending could affect retail sales and profitability in the months ahead.