Albertsons to sell 91 Safeways in Colorado
Apr 23, 2024, 10:07 PM
Colorado’s Safeways are facing an identity crisis.
In an attempt to get their proposed $24.6 billion merger across the finish line, the Albertsons and Kroger brands announced Monday that they are planning to sell 579 stores nationwide due to pressure from government regulators. Albertsons owns two Albertsons and 103 Safeway stores across the state and is planning to sell 91 of them for the hefty price tag of $2.9 billion.
This number has increased substantially since September, when the two grocery giants announced originally that they would sell 413 stores for $1.9 billion.
The stores will change hands to C&S Wholesale Grocers, a New Hampshire-based company. Regardless of the ownership swap, the individual locations will continue to operate under the same Safeway banner, according to a press release. Certain private-label brands will become available to C&S as a result. After the merger, the few stores that Albertsons will retain will be rebannered as City Markets or King Soopers, Kroger’s Colorado brands.
The U.S. Federal Trade Commission sued to block the merger earlier in the year in February, claiming that the lack of competition that would come as a result of the deal would have a negative affect on both shoppers and employees. Often cited was the concern regarding rising grocery costs and how that could negatively affect consumers. The sentiment was echoed by Colorado Attorney General Phil Weiser, who filed a lawsuit to block the merger.
The two companies are focusing on selling their stores in areas where their markets overlap, which includes the Centennial State.
Which Safeway and Albertsons stores will be kept by Kroger has not been disclosed. It remains to be seen whether or not the regulators will be satisfied with the plan.
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