The Friday Checkout: Kroger and Albertsons merger by the numbers

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.

The supermarket mega-merger between Kroger and Albertsons is happening, combining the second- and fourth-largest food retail providers in the U.S.

In announcing the $24.6 billion deal, which incorporates a per-share payment of $34.10 for Albertsons and the assumption of $4.7 billion in Albertsons’ net debt, Kroger outlined how the combined company will improve efficiency and expand service across numerous parts of the business, from private label development to retail media.

Both companies have built up considerable assets in digital and store operations, and combining these assets will be a complex undertaking. Altogether, Kroger and Albertsons operate nearly 5,000 stores, 66 distribution centers and 52 manufacturing plants.

In a conference call Friday morning, Kroger CEO Rodney McMullen said the merger will offer more personalized promotions for shoppers, and that Albertsons’ technology and e-commerce expertise will help fuel its growing omnichannel ecosystem.

“To achieve success in this integration, we will focus on combining each company's strengths while maintaining and enhancing both sets of distinctive banners,” he said.

Here’s a look at some of the key numbers from the announced merger:

By the numbers

710,000

The total number of associates the two companies currently employ.

85 million

The number of households Albertsons and Kroger currently count as their customer base. Kroger touted the figure as a key metric in helping build the value and evolution of both companies’ retail media businesses.

$1.3 billion

The amount Kroger plans to invest in the Albertsons chain to “enhance the customer experience,” according to Friday’s announcement. Kroger said it also plans to invest $1 billion to increase worker raises and benefits.

34,000

The number of private label products Kroger and Albertsons together offer across premium, specialty and value lines. Kroger said the companies’ combined innovation and manufacturing capabilities will improve store brand quality production efficiency.

$1 billion

The amount in run-rate synergies the companies will achieve within the first four years of operating as a combined company, according to Kroger. Half of that amount will be realized within the first two years following the deal closing, Kroger estimated.

100 to 375

The number of stores that Kroger and Albertsons expect to divest as part of the deal. The stores would operate under a subsidiary operated by Albertsons that would spin off to shareholders immediately prior to the merger closing, and operate as a publicly traded company.

In case you missed it

“It’s an ALDI thing”

This new tagline for the discount grocer ushers in a new brand campaign that includes the distribution of tiny billboards and a holiday campaign, according to a Tuesday emailed press release.

The tiny billboards will soon be found in high traffic areas of Atlanta, Dallas and Minneapolis. Each billboard will have a QR code that can be scanned, allowing local shoppers to enter to win free groceries for a year. Shoppers can also download their own tiny billboard from the grocer’s website to participate.

UNFI adds supply chain transformation officer role

United Natural Foods appoints Erin Horvath as its new chief supply chain transformation officer, a new role added as part of the company’s new leadership structure, according to a Thursday press release.

This new role will “help build UNFI’s transformation agenda and future capabilities, drive value creation for shareholders” and improve overall customer and supplier experience, the announcement notes. In addition, Horvath will lead automation initiatives that include UNFI’s recently announced automation agreement with Symbiotic.

Horvath took on this new position on Oct. 17, reporting to UNFI’s CEO Sandy Douglas. Douglas, since taking over as CEO in August 2021, has been restructuring and implementing a number of leadership changes. At the start of his promotion, he onboarded and promoted six new senior leadership hires.

The Giant Company’s new farm immersion lab

In a new partnership, The Giant Company has launched a mobile immersion lab that connects families to four Pennsylvania farms, as well as the farm-to-table process. Working with the PA Friends of Agriculture Foundation, the PA Farms to Families Immersion Lab facilitates “hands-on learning experiences and authentic food connections,” according to a Wednesday emailed press release.

The lab debuted at the Pennsylvania Farm Show Complex & Expo Center in Harrisburg, Pennsylvania, showcasing BrightFarms, Lazy Hog Farm, Buona Foods and Painterland Sisters by featuring their “on-farm production and environmental practices that bring food from field to plate,” the release said.

The PA Farms to Families Immersion Lab was sponsored by The Giant Company and is set to go on the road visiting schools and community events throughout the state this fall.

Hand reaching out to "Special" pricing tag in a grocery store. — "Special" pricing tags in a grocery store.

FangXiaNuo via Getty Images

Number of the week: 16.2%

That’s the rate at which prices for cereals and bakery products rose during the year that ended in September, the U.S. Bureau of Labor Statistics announced Thursday. The inflation rate for dairy and related products increased by 15.9% during that period, while prices for meats, poultry, fish and eggs were up 9%. Overall, food-at-home inflation was up last month at a 13% annual pace.

What’s ahead

Albertsons releases Q2 earnings

The nation’s fourth-largest supermarket chain will report its financial results for the second quarter on Tuesday, days after announcing that it intends to merge with rival Kroger.