Western States to See Massive Sell-Off of Kroger's and Albertson's Properties

More than 200 Kroger's and Albertson's stores in Arizona, Colorado, and New Mexico are slated for closing in response to federal antitrust concerns.

In the fall of 2022, the Cincinnati-based Kroger announced that it was buying out its rival Albertson's, which is based in Boise, in a $24.6 billion deal to combine the massive assets and facilities of both chains.

The move, historic in both its financing and the number of stores nationally that might be impacted, almost immediately encountered resistance from both state and federal officials concerned about the market monopoly potential.

In February of this year the Federal Trade Commission went to federal court to block the merger, contending that it would have a negative impact on both consumer prices as well as worker wages.

Now Kroger has announced that it is selling up to 579 stores, owned by both brands, in response to the FTC move. In a document called Planned Divestiture Store, Distribution Center, and Plant Locations, both companies list the stores slated for sale, a list that shows the state of Washington with the largest number at 124.

The next-largest asset change is taking place in Arizona, with a combined 101 Kroger and Albertson's stores hitting the market. Phoenix will see the selling of four Albertson's stores, another five in the city of Mesa. and three in Chandler.

Colorado will see the selling of 91 stores, 89 of which are branded as Safeways and owned by Albertson's. Exactly 14 Safeway locations in metro Denver are heading for the market, along with 11 in Colorado Springs, and four in Fort Collins.

Only nine stores will be listed for sale in New Mexico, a number that includes four Albertson's in Albuquerque and two Safeways in Farmington.

The huge sell-off will also include a production facility in Colorado: the Denver Dairy Plant in Denver.
In a statement, the United Food & Commercial Workers union said the selling of the various branded stores "changes nothing."

"We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago," the union said, listing concerns about workers' wages and consumer choice.

The U.S. District Court in Portland, Oregon is scheduled to hear arguments late next month regarding the FTC's move to block the Kroger-Albertson's merger.

In an earnings call earlier this spring Rodney McMullen, Kroger chief executive officer, asserted that the company's overall market prospects are strong, adding that Kroger's growth will continue "with or without the merger."

Funded in 1883, Kroger launched its first significant location expansion in the 1950s and 60s, primarily building stores in the early years of America's suburban expansion.
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The company today has more than 2,700 supermarkets and is now regarded as the largest supermarket operator in the country.

​By Garry Boulard

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