Kroger and Albertsons abandon more than 400 locations, from now
The two companies plan to unload the stores as part of a massive merger.
Store closings have become a constant threat to customers in recent years. From Interior decoration stores has Pharmacy channels , the retailers closed the locations on the left and right. From now on, two of the largest supermarket chains in the United States are planning to unload hundreds of grocery stores as part of a massive merger plan, which means that more closures may be on the way. Read the rest to find out why Kroger and Alberts are abandoning more than 400 locations.
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Kroger and Albertsons worked on a merger.
A large melting of grocery store is on the horizon. Last October, Kroger Announced plans To buy Albertsons for nearly $ 25 million, CNN reported. The agreement is expected to combine two of the largest supermarket companies in the United States and lead to one of the largest mergers in the history of the country. Together, these companies operate dozens of grocery chains. Kroger has channels that include Ralphs, Harris Teeter, Dillons and Fred Meyer, while Albertsons owns Safeway and Vons. AE0FCC31AE342FD3A1346EBB1F342FCB
"We bring together two organizations focused on the objectives to provide higher value to customers, partners, communities and shareholders". Rodney McMullen , President and chief executive officer of Kroger, said in a press release at the time. "Albertsons COS. Bring an additional footprint and operates in several parts of the country with very little or no Kroger stores ... as a combined entity, we will be better placed to advance the platform of Kroger in Kroger in Offering an incredible shopping without transport without transportation without transport of transport from Kroger Experience, expand our brands portfolio and offer personalized value and savings. "
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Companies must get rid of certain stores to obtain antitrust approval.
Kroger and Albertsons expect to finish their merger in 2024, and the two companies said they thought they had one " Claire's path "To obtain federal approval, CNN reported.
"We expect to do stores in store in certain areas, and we will work in cooperation with the Federal Trade Commission (FTC) to obtain authorization from the transaction," said Kroger Finance chief Gary Millerchip said during an appeal with analysts in October 2022, by CNN.
In other words, companies plan to unload hundreds of stores to gain the approval of antitrust regulators. The FTC uses Antitrust laws "Promote vigorous competition and protect consumers against anti -competitive mergers and practices," according to its website.
Before divests, Kroger and Albertsons would have 710,000 combined workers and nearly 5,000 stores during the merger. Companies hope to facilitate concerns about their potential control over the grocery market by selling certain locations to competitors.
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They just agreed to sell more than 400 locations.
In a September 8 Press release , the two companies have announced their new divestment plan, which will include the "sale of selected stores, banners, distribution centers, offices and brands of private brands" at C&S Wholesale Grocers, LLC.
It is another grocery retailer, which currently operates the Wiggly Grand Union and Piggly channels. According to the press release, the company should pay Kroger and Albertsons $ 1.9 billion for 413 stores, eight distribution centers, two offices and five private brand brands.
"Following the announcement of our merger proposed with Albertsons COS., We embarked on a robust and thoughtful process to identify a well -capitalized buyer who will operate as a fierce competitor and ensure the sold stores and their partners will continue to serve their Communities in the way they do it today, "McMullen said in a press release accompanying the press release. "It reaches all these objectives."
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Grocery stores in 17 different states will be affected.
The 413 locations will come from the United States, according to the press release. In total, Kroger and Albertsons plan to sell hundreds of stores in 17 states and Washington, D.C. Companies have not yet published information on the locations sold to C&S, but they have indicated how many will be sold in each state.
As part of the new divestment plan, they will sell 14 Albertsons stores in Alaska; 24 Albertsons stores in Arizona; 66 Albertsons and Kroger stores in California; 52 Albertsons stores in Colorado; 10 Harris Teeter stores in D.C., Maryland and Virginia; 13 Albertsons in Idaho stores; 14 Kroger stores in Illinois; 12 Albertsons stores in Montana, Utah and Wyoming; 15 Albertsons stores in Nevada; 12 Albertsons stores in New Mexico; 49 Albertsons and Kroger stores in Oregon; 28 Albertsons stores in Texas and Louisiana; and 104 Albertsons and Kroger stores in Washington.
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People are worried about potential closures.
In the opposition of consumer and union groups, Kroger and Albertsons have regularly promised not to dismiss workers or close the stores because of their merger plan. The decision to sell 413 locations to C&S also supports this promise, according to companies.
"The disinvestment plan guarantees that no store will close as a result of the merger and that all front -line partners will remain employees," the press release said.
But some people are always skeptical. Christine Martinez CNN told CNN that she had lost her job as a pharmacy technician when a similar divel plan had been put in place during the merger of Albertsons with Safeway in 2014. Martinez worked for a SAFEWAY subsidiary in Valence, in California, at the time, but it was a subsidiary on the 146 old Albertsons and Safeway stores purchased by a small chain called Haggen to obtain the approval of antitrust regulators.
According to Martinez, Haggen has revised its entire store, increased prices, reduces the hours and licensed employees. Finally, the store closed entirely - and it was not the only one. Less than a year later, Haggen has filed a bankruptcy and closed more locations, according to CNN.
Now Martinez fears that the merger of Kroger-Albertson has a similar impact and affects her new work as a pharmacy technician in a Ralphs supermarket, which belongs to Kroger.
"It brought back a lot of fear and anxiety," she told the media. "My colleagues feel anxious. They hear that Kroger will have to divest. Everyone fears that it is their store."
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