Kroger and Albertsons will sell 579 supermarkets to enable merger, but customers will still see their favorite products

KROGER and Alberstons have announced plans to sell a combined 579 stores to enable a merger.

The two food giants have faced obstacles from regulators, who say a merger would eliminate competition and lead to higher food prices.

3

Kroger and Albertsons have agreed to sell more of their stores to satisfy the Federal Trade Commission’s (FTC) concerns about a merger.

The combined total of stores the supermarket companies are prepared to run has increased to 579, up from 413 under previous plans.

If successful, the stores would be sold to C&S Wholesale Grocers, a New Hampshire-based grocery supplier and operator.

But that doesn’t mean customers would suddenly be shopping at C&S.

Instead, Albertsons would sell its Haggen flag seen in Washington to C&S.

C&S would also license the Albertsons banner in California and Wyoming, and the Safeway banner in Arizona and Colorado.

Shoppers would even find many of the same private label products in stores as before.

C&S would keep all stores open and honor any labor agreements, according to the proposal.

It is not yet clear whether the plans will satisfy regulators and be approved.

There is also no publicly known timeframe for the sale yet.

WHY NOT FUSION?

Kroger and Alberstons first announced their plans to merge in 2022.

They think this is necessary so they can compete with big rivals like Walmart and Amazon.

3

However, the FTC believes the merger could end competition.

This could lead to higher food prices for customers and lower wages for workers in the future.

In February, the FTC filed suit to block the proposed merger.

Kroger and Alberstons previously said they would challenge the FTC in court, while the plan to sell more stores aims to address concerns about competition.

If the merger goes ahead, Albertsons and Kroger would control 13% of the U.S. grocery market, according to JPMorgan analyst Ken Goldman.

However, the largest food retailer in the United States, Walmart, currently controls 22%.

Costco plans to open a new type of store for the first time in 15 years.

In the meantime, see which discount chain is closing all 371 locations.