Supermarket giant Kroger Co. plans to offload over 60 supermarkets in California as part of its merger with Albertsons. The companies released a list of stores, distribution centers, and plants they intend to sell to C&S Wholesale Grocers in order to appease regulators. This move comes after the Federal Trade Commission blocked the merger earlier this year, prompting the sale of 579 stores and facilities valued at $2.9 billion in April.
The 63 California stores include locations from Albertsons, Vons, Pavilions, and Safeway, affecting workers who will become employees of C&S Wholesale Grocers after the transaction closes. The proposed merger has faced opposition, with the FTC arguing it would harm competition and consumers. Despite this, Kroger and Albertsons maintain that the merger is necessary to compete with nonunionized rivals like Amazon.com and Walmart, pledging significant investments in price cuts, worker wages, and store improvements.
The fate of the merger is pending a trial in August, with UFCW unions in California opposing the deal due to concerns over its impact on workers, shoppers, suppliers, and communities. The proposed merger has been a point of contention for over 20 months, with both companies emphasizing the need to join forces in order to stay competitive in the changing grocery market landscape.
