Grocery Giants Kroger and Albertsons to Sell Off 579 Stores to Appease Government Amid Merger Effort
July 21, 2024 at 9:00am
Almost 600 grocery stores across America would change hands under a proposal from Kroger and Albertsons.
The grocery giants want to merge, but the Federal Trade Commission has opposed the deal.
That led the chains to announce a list of 579 stores that would be targeted so Kroger could acquire Albertsons, according to Fox Business.
This announcement shows just how much Alaskans have to lose if the Kroger-Albertsons merger goes through. We’re looking to the courts to uphold the FTC’s lawsuit and stop this merger. 🛑 #akpirg https://t.co/wPwiEDrzvq
— AKPIRG (@AKPIRG) July 10, 2024
The companies initially proposed offloading 413 stores C&S, but have since increased that to 579.
Distribution centers in Arizona, Colorado, Utah and Washington state would also be spun off, as would a Colorado dairy plant.
Kroger CEO Rodney McMullen has promised that it “continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages.”
The companies announced plans to merge in October 2022, but the FTC is fighting the plan, according to USA Today.
The two companies make up about 20 percent of the U.S. grocery market, Department of Agriculture figures show, One out of six grocery workers would be impacted if the deal goes through, according to the Bureau of Labor Statistics,
“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 — because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal,” the United Food & Commercial Workers, which represents grocery workers, said in a statement Tuesday.
In a statement on the union’s website, the Teamsters said the union will still “vehemently oppose this merger. The proposed consolidation threatens jobs, wages, and benefits for thousands of workers across the country. It risks reducing competition and harming communities that rely on these stores for essential goods and services.”
“The Teamsters will remain steadfast in our fight against this merger and will continue to advocate for the best interests of our members and their families. We commend the FTC and state attorneys general in Washington and Colorado for recognizing the detrimental impact it would have on workers at both companies and for taking decisive action in February, suing to block the Kroger-Albertsons merger,” the union said.
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