Kroger-Albertsons Merger Threatens Hundreds of Stores Nationwide

A proposed merger between Kroger and Albertsons threatens the existence of hundreds of stores nationwide.

Back in April, it was announced that for $2.9 billion, the two businesses intend to sell C&S Wholesale Grocers a total of 579 locations in overlapping markets. The initial plan was to sell 413 outlets for $1.9 billion, but this is an increase. In keeping with this revised deal, Kroger will also give C&S its Haggen banner. Additionally, C&S will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. Along with pledging to keep all stores open and respect current labor agreements, they will also have access to a number of private-label brands.

Now, Kroger has revealed the list of stores affected by the divestiture.

According to NBC San Diego, nearly a dozen stores in the area are threatened by the proposed merger, most of them under the Vons label. In total, 63 locations in California would be affected by the merger.

Alaska’s stores, too, could be negatively impacted by the merger, with more than 18 Carrs-Safeway stores (which are also under the umbrella) divested under the proposed merger between Kroger and Albertsons, according to Alaska’s News Source.

In Washington state, 124 stores would be affected, per The Seattle Times. Eight stores in the greater Chicago area would also be sold, according to Block Club Chicago.

The proposed merger between the two grocery giants has been met with resistance from local unions, with many representatives pushing back against it. A representative from Albertsons says that no stores will close and frontline workers would not be affected if the proposed merger goes through.

“Together, we have committed that no frontline workers will lose their jobs and no stores will close as a result of the merger, which is true for stores that remain with Kroger and those that are transferred to C&S,” said Kroger CEO Rodney McMullen in a statement. “C&S has also committed to maintaining transferred associates’ pay and health and wellness plans and to assume all collective bargaining agreements.”

Additionally, McMullen stated that after the merger agreement closes and multiple court matters are resolved, associates in the sold locations would become associates of C&S. They will continue to work for Kroger or Albertsons, respectively, until then, and those stores will continue to run exactly as they do now.