In a major shakeup in the grocery industry, Albertsons Companies and Kroger have announced plans to merge, with 18 Carrs-Safeway stores in Alaska and over 60 supermarkets in California on the list for divestiture. The merger, which would create one of the largest grocery retailers in the country, has been met with opposition from regulators and labor unions due to concerns about competition and potential job losses.
In Alaska, eight Carrs-Safeway stores in Anchorage will be sold to C&S Wholesale Grocers, a privately-held company that owns the Piggly Wiggly franchise. The merger was opposed by Alaska's delegation, including Sen. Lisa Murkowski and Rep. Mary Peltola, who wrote letters to the Federal Trade Commission expressing their concerns about the impact on wages and benefits for workers.
In California, over 60 supermarkets in Southern California will be sold off as part of the merger. The list includes 15 Albertsons locations, 31 Vons locations, and one Safeway store in the Bay Area. Workers at these stores will become employees of C&S Wholesale Grocers after the transaction closes, with pay and health plans being transferred and all collective bargaining agreements assumed.
The merger has been opposed by regulators due to concerns about reduced competition and potential price increases for consumers. The Federal Trade Commission sued to block the deal in February 2024, arguing that it would eliminate competition in various markets and lead to higher prices for millions of Americans. However, Kroger and Albertsons argue that the merger is necessary to better compete with larger retailers like Walmart, Costco, and Amazon.
The divestiture of these stores is intended to address concerns about competition, but critics argue that C&S may not be able to effectively run the stores due to its focus on wholesale distribution. The sale of these stores would also impact thousands of workers in California and Alaska, with potential job losses and uncertainty surrounding their future employment.
The merger is still subject to regulatory approval, with a trial expected in August 2024 that will determine the fate of the deal. In the meantime, workers at affected stores remain uncertain about their future as they wait for a decision on whether the merger will go through.
