The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
In its lawsuit against Kroger, C&S Wholesale Grocers paints a picture of why the Kroger-Albertsons merger was unsuccessful — and it’s very similar to claims Albertsons made in its own suit against Kroger.
In a lawsuit filed last week, which aims to get the $125 million termination fee it says it was promised from Kroger, the grocery distributor alleges that after state and federal regulators raised concerns about the first divestiture package, which included 413 stores and non-store assets, Kroger “obfuscated and delayed for months, ignoring suggestions from C&S and Albertsons to improve the original divestiture package.”
This echoes claims in Albertsons’ lawsuit alleging Kroger breached the merger contract between the two companies: “Kroger failed to respond promptly to regulatory feedback, and repeatedly delayed its responses to and its interactions with federal and state regulators. When it did engage, Kroger took untenable positions and failed to answer routine questions about its assumptions and data purportedly supporting proposed divestitures.”
C&S and Albertsons allege in their respective lawsuits that Kroger was responsible for managing the regulatory approval process.
Multiple times, Kroger presented changes to the divestiture plan with minor adjustments that did not fully address regulators’ concerns, C&S alleges. Kroger publicly unveiled a revised divestiture deal with C&S, which included 579 stores and more non-store assets, in April 2024 — two months after the FTC filed its lawsuit to block the merger.
“[Kroger] repeatedly chose to ignore regulators’ concerns, ultimately resulting in the failure to obtain the necessary approvals,” C&S said in the lawsuit.
Kroger has hit back, separately calling both lawsuits “baseless.” The lawsuits remain unresolved, but they could mean the grocery company needs to undertake damage control measures in order to boost its reputation.
In case you missed it
DoorDash adds Klarna as BNPL provider
The e-commerce provider has inked a deal with Klarna to offer the Swedish fintech company’s buy now, pay later service to shoppers. Customers will be able to pay for delivery orders from grocers, restaurants and other merchants they place through DoorDash’s platform in four equal interest-free installments, at a later date that they find more convenient or right away.
DoorDash also said this week that it has started providing grocery delivery services to customers of Earth Fare, King Kullen, Mollie Stone’s Markets, Uncle Giuseppe’s Marketplace, Westside Market and Wild by Nature.
Giant Food to debut 50th in-store Ledo Pizza station
The Mid-Atlantic grocer’s newest store, which is set to open March 28 in Bowie, Maryland, will feature a Ledo Pizza location in its deli section, marking the 50th store in the chain to feature the local brand. Shoppers will be able to order Ledo’s iconic square pizza fresh from the oven or to warm up when they get home. Giant opened its first Ledo Pizza Corner Shoppe in its Elkridge, Maryland, location in mid-2023.
Happy hour at the grocery store?
Ethnic grocery chain Vallarta Supermarkets is preparing to open a new location on Wednesday in Hemet, California, that will mark the grocer’s second store to feature its Sayulita Tap Room. The Mexican lager-inspired full-service bar will feature 24 beers on tap and a seating area with TVs as well as small bites and happy hour menus. Vallarta debuted the concept in 2020 at a store in Indio, California.
Impulse find
Harris Teeter throws a chainwide birthday bash
The East Coast supermarket chain will host parties on Saturday afternoon from noon to 2 p.m. at all of its more than 250 locations to mark its 65th year in business.
The festivities will include free balloons and cake for shoppers, and certain stores will also offer additional samplings and special events at their beer and wine stations. Harris Teeter is also offering savings on selected grocery items to mark the occasion.
Founded in 1960 by North Carolina grocers W.T. Harris and Willis Teeter, Harris Teeter was acquired by Kroger in January 2014.
