Albertsons to sell off 63 California supermarkets ahead of Kroger merger trial

Grocery firm to sell dozens of markets in LA County to C&S Wholesale

Albertsons to peel of 63 SoCal markets ahead of trial to decide Kroger merger
Albertsons' Vivek Sankaran and C&S Wholesale Grocers' Eric Winn with 9022 Balboa Boulevard (Western Michigan University, C&S Wholesale Grocers, Getty)

Albertsons is selling more than hot peppers and cold beer. The grocery chain is selling 63 supermarkets in California ahead of a trial to decide its pending merger with Kroger.

Kroger released the full list of stores, distribution centers and plants, including 63 supermarkets in California it plans to divest to secure approval for the proposed merger with Albertsons, Bloomberg reported.

New Hampshire-based C&S Wholesale Grocers is paying $2.9 billion for 579 US stores, according to an announcement last spring.

Of the dozens on the chopping block across the Golden State, most are in Southern California, including such Albertsons brands as Vons and Pavilion. They include 15 Albertsons, 31 Vons and 10 Pavilions markets from San Diego County to Ventura County.

The grocers, which announced their $25 billion merger in October 2022, are sharing the list ahead of a trial expected in August that will decide the future of their deal.

Kroger, based in Cincinnati, and Boise-based Albertsons argue the merger would allow them to compete with larger, non-unionized rivals, including Amazon, Walmart and Costco. 

Sign Up for the undefined Newsletter

The companies have pledged to invest $500 million to cut prices and $1 billion to raise worker wages and benefits, in addition to $1.3 billion to improve Albertsons stores.

The FTC’s complaint alleges the deal would hurt shoppers by eliminating competition on prices and quality. It also would give the grocers increased leverage over workers, slowing wage growth and cutting benefits, according to the complaint.

Union workers in California are protesting the planned merger, saying their jobs could be in jeopardy in any divestiture.

The FTC has also alleged that C&S would face significant challenges stitching together the various stores acquired from the grocers, and deems the grocers’ proposed divestiture package inadequate.

In 2015, the agency allowed Albertsons to buy Safeway after it sold 168 stores, the bulk of them to Washington state grocer Haggen Holdings. Less than a year later, Haggen filed for bankruptcy and Albertsons bought back a number of the stores.

— Dana Bartholomew

Read more

Ethnic Grocers Gobble Up Traditional Supermarket Space
Commercial
Los Angeles
Ethnic grocery stores gobble up traditional supermarket space
Equity Union Commercial's Cesar Gonzales; CBRE's Craig Peters and Richard Ramirez; Valencia Corporate Plaza (CBRE, Linkedin, Getty)
Commercial
Los Angeles
Latino supermarket upsizes to 195K sf HQ in Santa Clarita
Recommended For You