Kroger and Albertsons were hoping to merge the two grocery store chains, but the move has been scrutinized by the Federal Trade Commission.
To get the FTC on board, Kroger and Albertson’s have been selling off some locations or planning to close others to make the plan work.
Those changes could affect your local grocery store, so if you’re trying to save money on groceries by going to Kroger or Albertsons, here's what you need to know.
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Kroger and Albertsons want to merge
Kroger announced in October 2022 that it would buy Albertsons for a reported $25 billion. However, concerns were raised about the companies merging into one chain that would control a fifth of the U.S. grocery market.
This led to the two companies trying to offload stores to make a more appealing deal to present to the FTC.
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Kroger and Albertsons are planning a merger to make themselves stronger in the grocery market.
Companies like Walmart and Costco are major players in the grocery market. Walmart accounts for 22% of U.S. grocery sales, and Costco produces 6% of sales.
If the merger between Kroger and Albertson’s is approved, the combined company is expected to have around 13% of the market.
The merger includes selling stores
The two grocery chains decided to jettison some stores to make their merger look better for regulators.
But more than a year after the initial proposal, the FTC claimed the potential merger was still anticompetitive and it’s been held up until these concerns have been addressed.
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Your store may look different
The two stores have proposed closing some locations while also selling off other spots.
The biggest player in the potential sale of stores is C&S Wholesale Grocers. The company is based in New Hampshire and supplies and owns the grocery store chain Piggly Wiggly.
Which Albertsons stores will be sold?
Albertsons will take the biggest hit as store locations are offloaded as part of this potential sale before the merger.
Between Kroger and Albertsons, 579 stores will be sold, 485 of which will come from Albertson’s store portfolio. The stores include some Safeway locations, Pavillion, and Jewel-Osco.
Which Kroger stores will be sold?
The remaining 94 stores in the deal will come from Kroger’s locations that are being sold, including stores with other names under the Kroger umbrella, like Harris Teeter and Quality Food Centers.
The list of stores was expanded to 579 locations in April as part of the companies’ desire to make it easier for regulators to approve the merger.
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The sale affects stores in 19 states and the District of Columbia, with some states taking the biggest hit when their neighborhood stores change from Kroger or Albertsons to something else when C&S Wholesale Grocers completes its purchase.
Washington state will be the hardest hit, with 124 stores affected, followed by Arizona with 101, Colorado at 91, California at 63, and Oregon with 62 stores.
Other organizations also object to the merger
It’s not just the FTC that has expressed skepticism about this change; unions representing grocery workers are also worried about the potential deal.
Unions that represent food and commercial workers are concerned that the merger could harm workers and suppliers by affecting the jobs of workers at Kroger and Albertsons.
What will C&S Wholesale Grocers do with the stores?
It’s still not clear what will happen to the 579 stores if their sale to C&S Wholesale Grocers goes through.
The company hasn’t indicated whether it will change the store names or leave them as is. So, it’s still unclear if these stores will end up under the Piggly Wiggly brand or get a new name or look.
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Your local Kroger or Albertsons may not disappear, but both could change depending on whether your local store is part of the proposed sell-off.
You can still become a savvy shopper and find ways to save money by signing up for loyalty programs or using mobile apps to get coupons and rewards when you shop.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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