v3.26.1
RESTRUCTURING, ACQUISITION AND INTEGRATION RELATED EXPENSES
12 Months Ended
Aug. 01, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING, ACQUISITION AND INTEGRATION RELATED EXPENSES
NOTE 4—RESTRUCTURING, ACQUISITION AND INTEGRATION RELATED EXPENSES
The Company’s restructuring initiatives include optimization of its distribution center network, cost structure and retail footprint. The Company is unable to estimate the total amount of costs expected to be incurred in connection with the restructuring activities given their nature, including the consideration of multiple scenarios for the disposal of non-operating real estate. The Company did not incur any acquisition or integration related expenses in any of the periods presented. Restructuring expenses were as follows:
(in millions)202620252024
Severance and other labor-related costs24 30 30 
Closed property charges and costs, net28 11 
Contract termination charges and costs$— $53 $— 
Total Restructuring, acquisition and integration related expenses$52 $94 $36 
Severance and Other Labor-Related Costs

Restructuring costs for fiscal 2026 primarily include costs associated with certain employee severance and other employee separation costs related to the Company’s strategic initiatives focused on optimizing our cost structure and better aligning corporate resources, strategic retail store closures and distribution network optimization and adjustments to previously recorded multiemployer pension plan withdrawal liabilities. Restructuring costs for fiscal 2025 primarily include costs associated with certain employee severance and other employee separation costs related to the Company’s strategic initiatives focused on optimizing our cost structure and better aligning corporate resources, and strategic retail store closures, as well as outsourcing certain corporate functions under restructuring initiatives. Restructuring costs for fiscal 2024 primarily include costs associated with certain employee severance and other employee separation costs related to related to the Company’s strategic initiatives focused on optimizing our cost structure and better aligning corporate resources.

Closed Property Charges and Costs

Closed property charges for fiscal 2026, 2025 and 2024 primarily relate to non-operating distribution centers as the Company optimizes its distribution center network, and non-operating retail stores.

Contract Termination Charges and Costs

In fiscal 2025, the Company mutually agreed to terminate its supply agreement with a customer in the East region, pursuant to which the Company served as the customer’s primary grocery wholesaler in the Northeast. In connection with this termination agreement, the Company incurred a $53 million charge in the fourth quarter of fiscal 2025 for contract termination payments. The supply agreement terminated on September 6, 2025, and the customer’s conventional products business in the Northeast transitioned to another wholesaler. All installment amounts owed related to the contract termination have been paid.

Restructuring Liabilities Changes

The following table provides the activity of restructuring liabilities for fiscal 2026 and fiscal 2025, which are included in Accrued expenses and other current liabilities and Accrued compensation and benefits in the Consolidated Balance Sheets:
(in millions)Severance and other employee separation costsContract termination charges and costs
Balances at August 3, 2024
$16 $— 
Restructuring-related charges20 — 
Contract termination charges— 53 
Cash settlements(26)(18)
Balances at August 2, 2025
10 35 
Restructuring-related charges11 — 
Cash settlements(13)(35)
Balances at August 1, 2026
$$—