Kroger and Albertsons’ store divestiture proposal involves hundreds of supermarkets scattered across more than a dozen of the companies’ banners in close to 20 states, but it is heavily concentrated on only a single chain.
Nearly half of the 579 stores the retailers intend to sell to C&S Wholesale Grocers to tamp down antitrust concerns surrounding their planned merger fall under Albertsons’ Safeway brand, the list of stores slated for divestment shows.
Of the nearly 300 Safeway locations included in the divestiture package — almost a third of Albertsons’ entire Safeway fleet — more than half are in just two states, Colorado and Arizona, according to the list. Colorado is home to 89 of those Safeway stores, while 76 are in Arizona.
The Northwest accounts for the vast majority of the remaining stores under that brand that C&S is set to acquire, with Washington state and Oregon collectively home to more than 100 of the Safeway locations set for sale. All told, Albertsons runs about 900 Safeway stores.
Kroger, Albertsons divestiture plan, banner by banner
The details about the divestiture plan Kroger and Albertsons disclosed this week also show that Albertsons accounts for most of the stores the companies are willing to part with in order to consummate their merger. More than 80% of the stores that are part of the divestiture plan belong to Albertsons.
As of late February, Kroger operated 2,722 stores, while Albertsons counted 2,269 locations, according to the retailers’ latest annual reports filed with the Securities and Exchange Commission.
How many stores Kroger and Albertsons each plan to divest
Three states — Arizona, Colorado and Washington state — together account for 316 of the stores the companies want to sell. By contrast, nine states and Washington, D.C., are each home to 10 or fewer of the stores on the divestiture list.
States with the most stores slated for divestiture
In addition to the nearly 600 grocery stores Kroger and Albertsons are prepared to sell to C&S, the divestiture package includes six distribution centers and one dairy plant.