Amazon May Buy Divested Kroger, Albertsons Stores

Amazon has the resources, and potential drive to buy hundreds of grocery stores that Kroger and Albertsons are slated to divest, according to analysts at Bernstein research firm, reports Business Insider.

With Kroger and Albertsons’ merger expected to result in the closure of hundreds of locations, to meet antitrust requirements, there may be an opportunity for others looking to grow their presence to seize on these left-behind sites.

Now, Bernstein analysts are noting that, if Amazonbuys these locations, it could help the eCommerce giant meet its grocery goals, according to Business Insider.

“In theory, Amazon could plug acquired stores into its network, which would (potentially at least) prove less painful and costly than building a distribution and logistics network from scratch,” the analysts reportedly wrote, per the report. They noted that the option should “definitely be on the table” and that the divestitures would present a “very rare opportunity in U.S. retail” that would “align well with the goals” of Amazon.

Read more: Kroger-Albertsons Merger Could Give Walmart Shoppers A Low-Cost Grocery Alternative

Amazon is looking to build out its grocery presence. In the eCommerce giant’s annual report, the company noted the opportunity that the $800 billion U.S. grocery market poses, with households averaging three to four grocery store visits per week.

Amazon President and CEO Andy Jassy noted in a letter that the company has been following the blueprint of “how other mass merchants entered the grocery space in the 1980s,” building out its center-aisle selections, and that now the firm is turning its focus to perishables.

“While we’re pleased with the size and growth of our grocery business, we aspire to serve more of our customers’ grocery needs than we do today,” Jassy said in the letter. “To do so, we need a broader physical store footprint, given that most of the grocery shopping still happens in physical venues.”