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Kroger and Albertsons, which are considering a merger, have identified 579 grocery stores nationwide to sell from their combined total.
The plans to sell the stores are linked to the grocer’s efforts to ease concerns expressed by regulators over Kroger’s proposed acquisition of Albertsons.
The stores will be acquired by C&S Wholesale Grocers Inc. The sale is expected to occur after the Kroger-Albertsons merger closes, according to an April press release.
Kroger and Albertsons to sell 116 more stores in $25 billion merger
Kroger and Albertsons first announced they would transfer 413 stores to C&S in September 2023, then in April increased that number by 166 stores to the current number as part of a larger, updated divestiture plan.
Split image of Kroger and Albertsons storefronts. (Kroger: Charles Bertram/Lexington Herald-Leader/Tribune News Service via Getty Images | Albertsons: Shelby Tauber/Bloomberg via Getty Images/Getty Images)
Of the 579 stores, there are 18 in Alaska, 101 in Arizona, 63 in California, 91 in Colorado, 1 in Delaware, 10 in Idaho, 35 in Illinois, 2 in Louisiana, 4 in Maryland, 2 in Montana, 16 in Nevada, 9 in New Mexico, 62 in Oregon, 28 in Texas, 4 in Utah, 3 in Virginia, 124 in Washington state, 1 in Washington DC, and 5 in Wyoming. According to the list Issued by Kroger and Albertsons.
As previously reported by FOX Business, the C&S deal also involves Kroger and Albertsons giving up six distribution centers, a dairy plant, certain brands and other non-store assets.
The Kroger logo is displayed at a store in Streator, U.S., on October 15, 2022. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
According to the newly published list, the distribution centers are located in four states (Arizona, Colorado, Utah, and Washington), and the company also has a manufacturing facility in Colorado.
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When Kroger announced its latest divestiture plans in April, CEO Rodney McMullen said, “We remain committed to ensuring that no stores will be closed as a result of the merger, that all frontline associates remain employed, that all existing collective bargaining agreements remain in place and that associates continue to receive negotiated wages as well as industry-leading health care and pension benefits.”
The Kroger-Albertsons merger has been facing regulatory scrutiny for some time now: In February, the two chains were sued by the Federal Trade Commission, which is still litigating the matter.
An Albertsons sign outside a supermarket in Las Vegas, Nevada. (Photographer: Bridget Bennett/Bloomberg via Getty Images/Getty Images)
The FTC claims that a merger between Kroger and Albertsons would “increase the prices of groceries and other necessities for millions of Americans” and “reduce choices for where consumers buy their groceries,” among other problems. The two grocery giants say the merger would “deliver meaningful and measurable benefits to customers, stakeholders, and communities across the country.”
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Both Kroger and Albertsons are publicly traded companies.
The former’s market capitalization was hovering around $38.02 billion as of late Thursday afternoon, compared with $11.33 billion for Albertsons.
Eric Revell contributed to this report.
