Kroger Buys Albertsons in Supermarket Mega-Merger (Here’s the Latest Info)
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Kroger plans to sell 413 stores post-merger with Albertsons.
Albertsons Companies, Inc. and The Kroger Co. just broke the news that they have entered a definitive agreement with C&S Wholesale Grocers, LLC in connection with their proposed merger (announced in October 2022).
This divestiture agreement currently includes the sale of 413 stores across the country, along with QFC, Mariano’s, and Carrs brand names. It also includes banners, distribution centers, offices, and private-label brands like Primo Taglio and Open Nature.
Who are C&S Wholesale Grocers, LLC?
If you’re unfamiliar with C&S Wholesale Grocers, LLC, they have been around since 1918 and have a successful track record as a grocery retailer. They are also an industry leader in wholesale grocery supply and supply chain solutions and have a mission to keep their communities fed.
They currently supply more than 7,500 independent supermarkets, retail chains, and military bases, and they even operate the Piggly Wiggly franchise and Grand Union grocery stores.
There is a good chance you’ve shopped in one of their supplied supermarkets and just didn’t know it!
How will consumers and employees be impacted by the divestiture?
You may be wondering how this merger and divestiture plan will impact consumers. Fortunately, the divestiture plan will ensure that no divested grocery stores will close as a result. In an nutshell, your local store should remain open and under a customer-recognizable name with familiar private label brands in-store. 😀
With C&S’s proven track record, customers and store employees can feel optimistic that the impacted grocery stores will have long-term success in these new areas.
In fact, part of the divestiture was making sure that C&S Wholesale Grocers, LLC was committed to investing in associates and stores on a long-term basis. The plan is for frontline associates to remain employed and for their industry-leading healthcare and pension benefits to be maintained. To further ensure success, each new area will also be supported by two regional headquarters.
The divestiture will take place once the merger of Kroger & Albertsons is complete and the stores to be divested are located in the following states:
- WA: 104 Albertsons Cos. and Kroger stores
- CA: 66 Albertsons Cos. and Kroger stores
- CO: 52 Albertsons Cos. stores
- OR: 49 Albertsons Cos. and Kroger stores
- TX/LA: 28 Albertsons Cos. stores
- AZ: 24 Albertsons Cos. stores
- NV: 15 Albertsons Cos. stores
- IL: 14 Kroger stores
- AK: 14 Albertsons Cos. stores
- ID: 13 Albertsons Cos. stores
- NM: 12 Albertsons Cos. stores
- MT/UT/WY: 12 Albertsons Cos. stores
- DC/MD/VA: 10 Harris Teeter stores
The merger between Kroger & Albertsons, promises to be beneficial to customers too.
Kroger has some very exciting plans that are worth celebrating! 🎉
Once Kroger finalizes its purchase of Albertsons, it will have increased purchasing power and have a market share of 16% (slightly below the #1 grocer, Walmart, which has 21%). This gives the company the ability to negotiate with manufacturers for lower prices, better promotions, and more valuable coupons.
Post-merger, Kroger vows to invest $500 million towards reducing food prices for customers and $1.3 billion to improve the customer experience!
They also plan to donate 10 billion meals to families across America by 2030. To help you conceptualize the amount of food being donated, that is enough meals to feed every citizen of Seattle, Denver, Chicago, and Boston for each meal of the day for almost 2 years. 🙌
The outlook for employees is positive too! Kroger is investing $1 billion in improving associates’ wages and comprehensive benefits packages. This is on top of the $1.9 billion they have invested in employees since 2018.
According to their website, they have no plans to close stores, distribution centers, or manufacturing facilities. They also will not lay off any frontline associates as a result of the merger!
In summary, here’s what you need to know about the merger and divestiture:
- The merger is on track to close in early 2024. The divestiture will follow.
- Currently, 413 stores will be sold to C&S Wholesalers, LLC as part of the divestiture plan.
- Kroger is also divesting the Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals, and Waterfront Bistro private label brands.
- All divested grocery stores will remain open though some may be under a new, but familiar, name (or banner).
- All pharmacies and fuel stations associated with divested stores will also remain open.
- Frontline associates of divested stores will remain employed and will not lose their healthcare and pension benefits.
- The owners of both retained and sold stores are committed to having long-term success and providing affordable pricing to their communities.
- Kroger will now own Albertsons and its affiliates (including Safeway, Ralphs, Fred Meyer, and many more) for a combined market share of about 16%.
- Post-merger, Kroger is investing $500 million to reduce prices and $1.3 billion to improve the customer experience.
- Post-merger, Kroger is committing to donating 10 billion meals to families across America by 2030.
- Kroger also plans to invest $1 billion towards improving employees’ wages and comprehensive benefits packages.
- Kroger & Albertsons have announced that no store, manufacturing facility, or distribution center will close as a result of the merger. They also have no plans to lay off any frontline associates.