Results for: Kroger

Kroger and Albertsons have agreed to sell an additional 166 stores to C&S Wholesale Grocers in an effort to address the Federal Trade Commission’s (FTC) concerns about the merger. The total number of stores sold to C&S will now be 579, ensuring that no storefronts will close, no employees will lose their jobs, and no employee benefits will change upon the merger’s completion. The FTC is currently reviewing the revised divestiture deal and has not yet commented on whether or not it will affect its decision to allow the merger to proceed.

Shoppers at a Kroger store in North Little Rock, Arkansas, have expressed outrage over long lines and closed self-checkout kiosks. The store’s customers have taken to social media to vent their frustrations, sharing pictures of crowded checkouts and closed self-checkout machines. Kroger has apologized for the lines and stated that they are working to improve the checkout experience. However, similar complaints have been raised by shoppers at Walmart and Target stores, indicating a broader issue in the retail industry. Walmart has implemented a new policy limiting self-checkout items to 10 or fewer, while Target has trialled express self-checkout lanes with the same item limit. Despite these efforts, some shoppers have argued that these measures have only worsened checkout times.

Kroger and Albertsons have agreed to sell 579 stores to meet regulatory concerns, allowing for their merger to proceed. The stores will be acquired by C&S Wholesale Grocers, who will operate some under Albertsons and Safeway banners.

Kroger and Albertsons have expanded their divestiture plan in response to concerns raised by the Federal Trade Commission (FTC) about their proposed $24.6 billion merger. The companies now plan to sell 579 stores in overlapping markets to C&S Wholesale Grocers for $2.9 billion. This represents a significant increase from the initial plan to divest 413 stores for $1.9 billion. The FTC had previously expressed concerns that the initial plan was inadequate and would not effectively address competition concerns in certain markets. The updated plan includes the sale of Kroger’s Haggen banner and licensing agreements for the Albertsons and Safeway banners in certain states. C&S has committed to keeping all stores open and honoring labor agreements.

In its recent earnings report for FQ4, Albertsons Companies (ACI) surpassed EPS estimates while providing an update on its merger plans with Kroger (KR). Despite flat revenue year-over-year, ACI’s 1.0% increase in identical sales fell short of expectations. Strong growth in pharmacy sales compensated for lower fuel and wholesale revenue. The company’s digital business continued to expand, showing a 24% sales surge. Albertsons improved its gross margin to 28.0% of sales, up from 27.8% the previous year. However, excluding fuel and LIFO, the gross margin rate declined 58 basis points. ACI credited its productivity initiatives for enabling continued targeted price investments for customers. ACI and Kroger announced modifications to their divestiture agreement with C&S Wholesale Grocers, expanding the store count to be sold by 166. Shares of ACI rose 0.69% in premarket trading.