Albertsons, the second-largest supermarket chain in the United States, has set a $100 million nominal fund raising target for its initial public offering.
A significant portion of the funds collected from the IPO are expected to be used for replaying corporate debts, as competition from upscale chains like Whole Foods continues to drive profits down.
"Traditional supermarket chains are in a very challenging position and they need to enhance their differentiation, improve their competitiveness," Technomic Executive Vice President Bob Goldin told Reuters. Technomic is a foodservice consultation agency.
"They have a tough game to win."
Krugers, the largest supermarket chain in the country, has also contributed to declining Albertsons profits. The company recently reported a 23 percent rise in quarterly profit, which is partly attributed to low fuel costs.
The supermarket chain's shares have continued to increase and its earnings surpassed the expectations of many analysts. Kroger is expected to surpass its industry rival in two years, especially with the popularity surrounding its online ordering program and sales of prepared meals.
"Millennials and Boomers alike are focusing more on healthy eating choices and creatively prepared meals," analysts from the real estate investment firm JLL wrote in an analysis of company.
Albertsons was founded in 1939 in Boise, Idaho.
