Kroger identifies WA stores it will sell in effort to get Albertsons deal approved

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This QFC store in the Kirkland Urban shopping center is one of 124 Washington grocery stores that parent company Kroger Co. plans to sell to Keene, N.H.-based C&S Wholesale Grocers to allay antitrust concerns.
ANTHONY BOLANTE | PSBJ
Steve Watkins
By Steve Watkins – Staff reporter, Cincinnati Business Courier

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Kroger Co. has identified the 579 stores it plans to sell to C&S Wholesale Grocers in an effort to get antitrust regulators’ approval for its $24.6 billion acquisition of Albertsons Cos.

Cincinnati-based Kroger (NYSE: KR), the nation’s largest operator of traditional supermarkets, notified employees Tuesday, July 9, and revealed the list of stores to be sold. The transaction with C&S is contingent on completion of Kroger’s purchase of Albertsons.

Kroger’s planned sales are largely in markets where Kroger and Albertsons, the nation’s second-largest operator of traditional supermarkets, have significant overlap. It plans to sell stores in 18 states and Washington, D.C. (number of locations per state are listed):

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  • Washington, 124
  • Arizona, 101
  • Colorado, 91
  • California, 63
  • Oregon, 62
  • Illinois, 35
  • Texas, 28
  • Alaska, 18
  • Nevada, 16
  • Idaho, 10
  • New Mexico, 9
  • Wyoming, 5
  • Maryland, 4
  • Utah, 4
  • Virginia, 3
  • Louisiana, 2
  • Montana, 2
  • Delaware, 1
  • Washington, D.C., 1.

Additionally, Kroger will sell distribution centers in Arizona, Colorado, Utah and Washington and a dairy plant in Denver to C&S as part of that transaction. Here is a full list of stores Kroger and Albertsons plans to sell.

Much of the overlap is in markets including Denver, Los Angeles, Phoenix and Seattle.

Stores in Washington state account for over 20% of Kroger’s planned sales nationwide. Targeted locations, mostly in the Puget Sound area, include 59 Safeway stores, 50 QFC stores, 12 Haggen stores and three Albertsons stores.

Of the 15 Seattle stores listed, 12 are QFCs and three are Safeways:

Seattle QFCs

  • Interbay: 1600 W. Dravus St.
  • Westwood Village: 2500 SW Barton St.
  • Capitol Hill: 1401 Broadway
  • Rainier Valley: 2707 Rainier Ave. S.
  • Olympic Hills: 1531 NE 145th St.
  • Northgate: 11100 Roosevelt Way NE
  • Wallingford: 4500 Wallingford Ave. N.
  • Greenwood: 9999 Holman Road NW
  • Uptown: 500 Mercer St.
  • Alaska Junction: 4550 42nd Ave. SW
  • Capitol Hill: 417 Broadway E.
  • Ballard: 5700 24th Ave NW

Seattle Safeways

  • Crown Hill: 8340 15th Ave. NW
  • Admiral: 2622 California Ave. SW
  • Wedgwood: 7340 35th Ave. NE

The Federal Trade Commission has filed a lawsuit in federal court in Oregon opposing the Kroger-Albertsons merger. A hearing is scheduled for Aug. 26.

Kroger and Albertsons agreed to the deal, the largest grocery acquisition in U.S. history, in October 2022.

Kroger agreed in September 2023 to sell 413 stores to Keene, N.H.-based C&S Wholesale Grocers. In April it increased the number to 579 in an effort to satisfy regulators.

Kroger has more than 2,700 stores in 35 states. Albertsons has 2,272. The combined companies have stores in 48 states.

Kroger CEO Rodney McMullen told employees at the affected stores in the July 9 letter they can expect things to remain the same for them if the deal with C&S takes place.

“Together, we have committed that no frontline workers will lose their jobs and no stores will close as a result of the merger, which is true for stores that remain with Kroger and those that are transferred to C&S,” McMullen said in the letter.

Rodney McMullen

Rodney McMullen, chairman and chief executive officer of Kroger Co.
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C&S will keep employees’ pay and health plans while maintaining all collective bargaining agreements, he said.

C&S also will continue to operate all fuel centers and pharmacies associated with those divested stores.

Employees will remain with Kroger or Albertsons, depending on the store, until court cases are resolved and Kroger’s acquisition of Albertsons is completed.

C&S also will acquire the QFC, Mariano’s, Carrs and Haggen banner names from Kroger and license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. Stores under those banners that Kroger will keep will be shifted to a new name once the sale is completed.