Kroger plans to sell 413 stores if Albertsons merger approved; 104 stores in Washington

Kroger announced the sale of 413 stores — including 104 in Washington — as part of its plan to purchase Albertsons Cos. for $24.6 billion.

Kroger said Friday the merger with Albertsons, which has been pending since October, is on track to be completed in early 2024. C&S will pay Kroger $1.9 billion in cash once the agreement is approved by federal regulators.

None of the stores sold in Texas include Kroger stores, said John Votava, a Kroger spokesman. The 26 locations are all from Albertsons which operates its namesake stores, Tom Thumb and Market Street locations in Dallas-Fort Worth.

A list of stores being sold is not yet available.

“Because we are still in the regulatory process, we are not able to share the specific locations included in the agreement,” Votava said.

Prior to the closing, Kroger may be required by the Federal Trade Commission to sell up to 237 more stores in some areas. If additional stores are added to the transaction, C&S has agreed to purchase the stores.

The sale to C&S Wholesale Grocers also includes eight distribution centers, two offices and five private label brands in 17 states and Washington D.C.

Those additional assets and infrastructure are a recognition by Kroger that if it’s going to gain antitrust approvals, its divestiture had to address weaknesses of the 2015 Albertsons acquisition of Safeway which sold stores to weak operators and resulted in store closings.

C&S was founded in 1918 as a supplier to independent grocery stores and now supplies more than 7,500 independent supermarkets, chain stores, military bases and institutions with over 100,000 different products. While C&S is a big wholesale supplier, it only operates 160 stores and most are Piggly Wiggly stores in Wisconsin. It also operates Grand Union stores in New York and Vermont.

C&S has agreed to honor all collective bargaining agreements, securing the union jobs and protecting employees’ health care and pension benefits as well as bargained-for wages.

“We are confident C&S’s experienced, purpose-driven leadership team and more than 100-year history of food industry experience will enhance the competitive marketplace,” Votava said.

These stores won’t be sold until Kroger’s purchase of Albertsons is completed. Here’s the divestiture by state, number of stores and from which companies:

Texas: 26 Albertsons Cos.

Louisiana: 2 Albertsons Cos.

Washington: 104 Albertsons Cos. and Kroger

California: 66 Albertsons Cos. and Kroger

Colorado: 52 Albertsons Cos.

Oregon: 49 Albertsons Cos. and Kroger stores

Arizona: 24 Albertsons Cos.

Nevada: 15 Albertsons Cos.

Illinois: 14 Kroger

Alaska: 14 Albertsons Cos.

Idaho: 13 Albertsons Cos.

New Mexico: 12 Albertsons Cos.

Montana, Utah and Wyoming: 12 Albertsons Cos.

Washington, D.C., Maryland and Virginia: 10 Harris Teeter stores