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Kroger to Sell 63 Albertsons Stores in California to C&S Wholesale Amid Merger Agreement

Kroger and Albertsons Cos. on Monday, April 22 announced a revised plan to divest 579 stores, 63 of them in California, to C&S Wholesale Grocers as part of a proposed $26.4 billion merger.

New Hampshire-based C&S is paying $2.9 billion for the stores, according to a statement from the supermarket chains.

Store Divestments by State

• Arizona: 101 Albertsons brands
• California: 63 Albertsons brands
• Colorado: 91 Albertsons brands
• Idaho: 10 Albertsons brands
• Nevada: 16 Albertsons brands
• New Mexico: Nine Albertsons brands
• Montana, Utah and Wyoming: 11 Albertsons brands
• Oregon: 62 Albertsons and Kroger stores
• Washington state: 124 Albertsons and Kroger stores
• Texas/Louisiana: 30 Albertsons brands
• Illinois: 35 Albertsons and Kroger stores
• Washington, DC, Maryland, Virginia and Delaware: Nine Harris Teeter stores
• Alaska: 18 Albertsons brands

Kroger's Rationale

Kroger called union statements “false and misleading.”

“The facts are clear – this merger is inherently pro-union, and we have the track record to prove it,” the company said. “Kroger added more than 100,000 good-paying union jobs since 2012 and invested $1.9 billion to grow associate wages and industry-leading, comprehensive benefits since 2018.”

Union Concerns

Union workers in California have protested the planned merger, saying their jobs could be in jeopardy in any divestiture.

“C&S has no track record of successfully running grocery stores,” John Marshall, a strategy director for the United Food and Commercial Workers International union, said in January. “If you look at their revenue over past six years, its been declining significantly — and they are clearly not a pro-union company.”

Kroger's Investment Plans

Kroger has promised to invest $500 million to lower prices as soon as the deal closes. It said it also invested in price reductions when it merged with Harris Teeter in 2014 and Roundy’s in 2016. Kroger also promised to invest $1.3 billion in store improvements at Albertsons as part of the deal.