As part of an attempt to successfully merge companies, Kroger-Albertsons is planning to sell off hundreds of grocery stores across the U.S. to C&S Wholesale Grocers.
PORTLAND, Ore. (KOIN) — As part of an attempt to successfully merge companies, Kroger-Albertsons is planning to sell off hundreds of grocery stores across the U.S. to C&S Wholesale Grocers, including 28 in Texas.
Kroger-Albertsons announced the plan to divest 579 of their stores to the New Hampshire-based grocery company C&S for $2.9 billion back in April. However, the specific stores that would be sold off were not confirmed by the companies until Tuesday, as The Oregonian first reported.
The complete list of stores owned by both Albertsons and Kroger — including under Safeway and QFC branding, among others — that would be sold off includes stores across 18 states and Washington, D.C., plus distribution centers in four states and one plant in Colorado.
The states with stores set to close are:
You can see the full list of the 579 stores being sold, including their addresses, here.
A Kroger spokesperson confirmed the divestiture plan with Nexstar's KOIN, saying they fully expect the stores — with the same frontline employees — to remain open under C&S after the sale happens.
"The comprehensive divestiture plan with C&S is critical to bringing the meaningful and measurable benefits of our merger with Albertsons to associates, customers and communities across America. C&S committed to ensuring zero stores will close as a result of the merger, all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading benefits alongside bargained-for wages," a company statement read, in part.
In addition to the 579 stores Kroger-Albertsons plans to sell off across the U.S., they also plan to close six distribution centers and one plant.
This all comes following government concerns over the two major grocery retailers joining as one. The U.S. Federal Trade Commission sued to block the $24.6 billion merger in February. The FTC argued that a lack of competition would eventually lead to higher grocery prices for shoppers and lower wages for workers.
It's unclear if the new proposal will satisfy regulators to allow the merger to continue. The FTC was unsatisfied with the initial proposal, put forward last year, to sell off 413 stores to C&S for $1.9 billion.
The FTC said C&S would be left with a random mix of stores, spread out over a large geographic area, that would put it in poor position to compete with a merged Kroger-Albertsons.
That prompted Kroger and Albertsons to come back with a new plan, including a longer list of stores to divest from. The companies say they need to merge to compete with mega-retailers like Walmart and Amazon.
A trial has been set for that lawsuit to move forward in federal court in Oregon on August 26.
