Kroger and Albertsons are set to divest almost 600 stores as part of a proposed merger.
Should the merger go through, multiple states will experience divestments of Kroger and Albertsons stores within the double digits, and there would be even more in Washington and Arizona, with 124 and 101 closures, respectively. There would be 63 store divestments in California, meanwhile, and 91 in Colorado.
“The divestiture plan ensures no stores will close as a result of the merger and that all frontline associates will remain employed,” read a statement from an Albertsons Co. spokesperson. “Furthermore, associates will also continue to receive the competitive wages and benefits that they do today, maintaining their pay, health, and wellness plans, and all collective bargaining agreements where they are in place.”
The number of closures with this proposed $24.6 billion merger would be 579, an uptick from the initial proposed 413 closures. Both Kroger and Albertsons, which have almost 5,000 locations combined, have since agreed to sell stores to C&S Wholesale Grocers, the owner of the Piggly Wiggly grocery brand, after their merger was blocked by the Federal Trade Commission.
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The FTC sued to block the merger earlier this year, arguing it would create less competition between brands, which in turn could lead to reduced product quality and increased prices. The merger, the FTC claimed, could also be harmful for employees wanting higher pay and other benefits.
Kroger and Albertsons have contended that the merger is necessary for the two to compete with larger grocery chains, such as Walmart and Costco. The two grocery companies have also vowed to invest $500 million to cut prices and $1 billion to increase the pay and benefits of employees.
Editor’s note: This story has been updated to reflect stores will be divested rather than closed pending approval of the merger.
