To secure approval for their merger, grocery giants Kroger and Albertsons have agreed to sell a combined 579 stores. This exceeds the 413 stores they initially proposed to divest.
The stores will be acquired by C&S Wholesale Grocers, a New Hampshire-based grocery supplier and operator. However, customers will largely continue shopping under the same banners, as C&S will license Albertsons and Safeway branding in certain states.
Albertsons’ Haggen banner will be sold to C&S, who will also maintain all of the stores and honor labor agreements.
The move aims to address concerns raised by the Federal Trade Commission (FTC), which feared the merger would reduce competition and lead to higher grocery prices.
If approved, Kroger and Albertsons would control 13% of the US grocery market, still behind Walmart’s 22% share. The merger requires regulatory approval, and no timeframe for the sale has been announced.
Kroger and Albertsons claim the merger is necessary to compete with Walmart and Amazon, while the FTC argues it could harm competition and harm consumers.
