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Kroger to Sell 579 Stores in 18 States to Secure Albertsons Deal

 |  July 10, 2024

Kroger has released the comprehensive list of stores, distribution centers, and plants it intends to divest as part of efforts to secure regulatory approval for its proposed $24.6 billion merger with Albertsons Cos.

In a memo dated July 9, Kroger CEO Rodney McMullen informed employees at the affected locations about the forthcoming changes. McMullen assured that impacted workers will transition to becoming employees of C&S Wholesale Grocers following the transaction’s closure. Until then, they will remain under the employment of Kroger and Albertsons. McMullen emphasized that C&S Wholesale Grocers is committed to transferring existing pay and health plans and will honor all current collective bargaining agreements.

Kroger, Albertsons, and C&S rank 38th, 40th, and 98th, respectively, on the Transport Topics Top 100 list of the largest private carriers in North America.

The list of divested assets is being shared ahead of an anticipated trial in August, which will determine the fate of the merger initially announced in October 2022. In response to the Federal Trade Commission’s (FTC) objections in April, Kroger and Albertsons have increased the number of assets to be sold from 413 to 579.

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

The divestiture package includes 124 stores in Washington state, 101 in Arizona, 91 in Colorado, and 63 in California, among others. Additionally, it encompasses a dairy plant in Colorado and six distribution centers spread across four states.

This strategic move is designed to alleviate regulatory concerns and pave the way for the merger, which aims to create a more competitive landscape in the grocery sector.

About Kroger and Albertsons

Kroger Co., one of the nation’s largest grocery retailers, operates under various banners and prides itself on a strong presence in many communities across the United States. Albertsons, another major player in the grocery industry, also operates numerous stores nationwide. Both companies are seeking to combine forces to better compete with other retail giants and enhance their market position.

Source: USA Today