Kroger and Albertsons announced the sale of 413 stores, eight distribution centers and five private label brands to C&S Wholesale Grocers, a deal directly related to the proposed merger of the two selling entities. The stores sold are located (in order from the most to the least number of stores sold) in the states of Washington, California, Colorado, Oregon, Texas, Louisiana, Arizona, Nevada, Illinois, New Mexico, Montana, Utah, Wyoming, Washington D.C., Maryland, and Virginia.
According to Kroger and Albertsons, the deal ensures that no stores will close as a result of the merger.
C&S said in a press release that its affiliate, 1918 Winter Street Partners, will operate the stores. Brand names that will be under C&S control include QFC, Mariano’s and Carrs. In addition, the company will have exclusive licensing rights to the Albertsons brand name in Arizona, California, Colorado and Wyoming.
C&S plans to continue to recognize the union workforce and maintain all collective bargaining agreements, and says it is committed to retaining frontline employees.
Local unions in 14 states representing more than 100,000 Kroger and Albertsons employees have expressed concerns over the merger. Seven secretaries of state from around the country and seven state treasurers – including Colleen Davis of Delaware – have publicly opposed the merger in signed letters to the FTC. Albertsons operates 15 Acme supermarkets and three Safeway locations in Delaware, and Kroger has two Delaware stores due to its acquisition of Harris Teeter Supermarkets. It’s unknown yet whether the announced sale of stores will change the opposition’s opinion.
Kroger and Albertsons are hoping for the merger to be approved in early 2024.
