Grocery giants Kroger and Albertsons have unveiled a plan to sell off 35 Illinois stores, most of them Mariano’s locations, as part of their efforts to gain federal approval for their planned megamerger. The sale, which includes eight stores in Chicago, would see the majority of Kroger-owned Mariano’s divested to C&S Wholesale Grocers for $2.9 billion. Additionally, the plan involves selling off the Mariano’s brand name to C&S, with only four Albertsons-owned Jewel-Osco locations being included in the divestiture.
This move comes after an initial divestiture plan in September, where the companies announced their intention to sell more than 400 grocery stores nationwide, including 14 in Illinois. Facing pressure from federal regulators over their $24.6 billion merger, Kroger and Albertons increased the total number of planned divestitures to 579 in April, with 35 stores in Illinois being targeted. The Federal Trade Commission has raised concerns that the merger could lead to higher consumer prices and lower wages for workers, prompting a lawsuit to block the deal that is scheduled to head to trial in August.
Despite promises from Kroger CEO Rodney McMullen that frontline grocery workers will keep their jobs and collective bargaining agreements will be honored, the proposed Kroger-Albertsons merger continues to face opposition from labor unions, elected officials, and other stakeholders. The future of the merger remains uncertain as the companies navigate through regulatory challenges and pushback from various parties who believe that the consolidation of grocery giants could negatively impact competition and consumer choice in the market.
