Kroger, in a bid to secure the $25 billion merger with Albertsons, has announced an updated divestiture plan. The supermarket chain will sell an additional 166 stores to C&S Wholesale Grocers, bringing the total number of divested stores to 579. The move aims to address concerns raised by the Federal Trade Commission, which had previously deemed the merger anti-competitive.
However, industry members and union leaders have expressed concerns over the revised plan. The coalition representing Kroger and Albertsons workers worries that C&S, a New Hampshire-based wholesaler, may struggle to operate the hodgepodge chain of retail stores due to its lack of experience and capabilities.
The FTC’s lawsuit against the merger is set for a hearing in August. Experts note that the definition of the grocery market has expanded, including digital retail and significant competitors like Walmart and Amazon. The commission faces the challenge of determining what constitutes competition in the evolving supermarket landscape.