Albertsons/Kroger may sell 5 Wyoming stores -- if the merger goes through

Albertsons and Kroger are continuing to battle for their merger - Background Photo: The Retail Photographer

A detailed list of stores planned for divestiture to C&S, primarily made up of larger Albertsons Companies banners like Albertsons, Vons, and Safeway, has just been released. Five Wyoming Albertsons including one of the two Cheyenne locations is included in the list of stores that C&S would operate if the merger goes through.

Quick glimpse of recent events with this merger

Albertsons and Kroger have shown interest in merging their stores into what has been dubbed Albert-Krogerson. The two companies have been actively working toward finalizing a deal to merge since October 2022 when they announced a "definitive merger agreement." 

In consideration of the Albertsons-Safeway merger (also the Albertsons-Haggan merger), many people and outlets were quick to express concern that such a merger with Kroger may result in stores across the country closing, as was reported by numerous outlets including CNN. Concerns were also brought to attention as to how this could affect worker's ability to negotiate better pay and working conditions within their jobs.

Safeway is currently owned by Albertsons. They merged in 2015. (The Haggan merger occurred the following year.) - The Retail Photographer

A lawsuit was filed in February 2023 in the Northern District Court of California, and the lawsuit was intended to stop the merger between the two brands. This case had concerns over inflated prices among other issues. The bottom line, it flopped and then flopped again. Around the time this lawsuit was initially filed, the merger was already expected to divest at least one hundred locations in areas with overlapping stores.

It wasn't yet clear who would be acquiring the divestitures of Albertsons and Kroger. At best, there was talk of Netherlands-based Ahold Delhaize being a possible buyer. In late 2023, however, C&S Wholesale Grocers--parent of Piggly Wiggly--entered into a definitive agreement to purchase 413 stores, 8 distribution centers, and 2 offices.

Kroger operates under non-Kroger banners in Wyoming including King Soopers, City Market, and Smith's. - The Retail Photographer

Fast-forward to February 2024, Colorado filed a lawsuit to block the merger over concerns that the merger would leave some communities in Colorado with less access to groceries; this followed Washington state's lawsuit--which was filed the month prior--regarding concerns of fewer choices of places to shop, less competition, and inflation.

Toward the end of February, the FTC, eight states, and the District of Columbia also filed a lawsuit to block the merger. In the lawsuit, the FTC alleged that the deal is anti-competitive, stating that reduced competition will result in higher prices for essential household goods, lead to lower quality products and services, reduce the choices of places to shop for groceries, and make it challenging for workers to receive higher pay and better working conditions.

Welcome to Wyoming sign seen at the newer Cheyenne Regional Airport terminal - Optopolis

Wyoming was one of the states that joined the FTC in their lawsuit. At this specific moment in time, the agreement for the merger included selling "up to 650 stores to ensure the deal goes through," as noted by Cowboy State Daily. The other states that joined the FTC's lawsuit in addition to Wyoming include Arizona, California, Illinois, Maryland, Nevada, New Mexico, and Oregon.

Wyoming stores to be impacted if this merger goes through

In April 2024, 166 additional stores were added to the divestiture plan, bringing the total to 579 locations set to be sold to C&S Wholesale Grocers--although not all Wyoming stores are included as new information contained herein confirms.

A release from Albertsons stated that, "Under the amended agreement, C&S will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado." The press release includes stores in the states of Montana, Utah, and Wyoming, a total of 11 Albertsons stores that were already set to be sold to C&S.

This Safeway on Harmony Road in Fort Collins would be affected by the sale. - The Retail Photographer

A detailed list just recently published contains all 579 locations that would be sold to C&S if the merger goes through. Stores listed in Wyoming include five out of all of Wyoming's Albertsons-branded stores.

One of Cheyenne's Albertsons (E Pershing Blvd) and one of Casper's Albertsons (CY Ave) are included in the list, in addition to three other Albertsons stores in Jackson, Gillette, and Rock Springs. Cheyenne and Casper both have two Albertsons each, respectively, in addition to one Kroger-owned store in each city--respectively--King Soopers in Cheyenne and Smiths in Casper.

Albertsons on E Pershing Blvd would be affected by the sale according to the new list, but the Yellowstone Rd location would likely remain under Albertsons/Kroger ownership, again based on this list. - Optopolis

Other states/areas affected by the divestiture include Alaska, Arizona, California, Colorado, Delaware, Idaho, Illinois, Louisiana, Maryland, Montana, Nevada, New Mexico, Oregon, Texas, Utah, Virginia, Washington, and the District of Columbia. Six distribution centers and one plant would be affected in addition to the hundreds of stores.

The fiasco isn't over... Yet. Kroger claims it's good for the people the FTC is trying to protect.

Each current lawsuit against the merger is still underway--yet to have their respective court dates arrive. The Washington state case is set to begin trial on September 16th. The Colorado case is set to begin its hearing on August 12th, and the FTC's evidentiary hearing is set to begin on July 31st (followed by a "request for a preliminary injunction seeking to block the planned Kroger, Albertsons merger," regarding the FTC's request).

[Update 07-25: The merger has been put on hold as the two chains are waiting for a Colorado court ruling on the lawsuit to block the deal. Trial for this lawsuit is set to begin on September 30th. This eliminates the need for the aforementioned preliminary injunction hearing that would've taken place on August 12th.]

There have been unconfirmed rumors and speculation of a possible future King Soopers on the south-side of Cheyenne. If true, it's not clear at this time here at Optopolis how this merger may affect the alleged future location. - Optopolis

A Kroger spokesperson has said that blocking the Albertsons-Kroger merger would harm the very people the FTC is trying to protect, that the FTC's decision would make it more likely for consumers to see higher food prices and fewer grocery stores. As shared on Supermarket News, Kroger states that the divestiture plan "is critical to bringing meaningful and measurable benefits...to associates, customers, and communities across America."

However, several UFCWs say that it would harm workers, shoppers, suppliers, and communities, even stating , simply, that "it is illegal." As Oil City News notes, the FTC has stated that if the merger were completed, the merged company would operate more than 5,000 stores and about 4,000 retail pharmacies across 48 states.

King Soopers often features services like pharmacy, cheese bar, sushi bar, and other aspects in their stores. Starbucks Kiosks also may be present inside of King Soopers. - The Retail Photographer

For comparison, according to Scrape Hero, Walmart owns about 4,600 stores in the United States, many of which include pharmacies and other services provided either by Walmart (such as their eye care clinics and money services) or a third party (like McDonalds, Regis, etc.)

In the end if the merger between Albertsons and Kroger is approved, Susan Morris, Albertsons Companies' Chief Operations Officer and Executive Vice President is expected to become President and CEO of Retail at C&S Wholesale Grocers.

This is a, perhaps, more extreme instance of merging that has been going on for over a year at this point. Do you think the FTC, Colorado, or the state of Washington will win their cases against the merger? If the merger goes through, do you think stores will close in spite of everything discussed above, or would all associated stores somehow be able to remain open?

Originally published: 07/10/2024 at 7:13 AM MT

Updated: 07/11/2024 at 10:08 PM MT to correct information about hearing dates; the FTC's court hearing date begins about two weeks prior to Colorado's hearing, not after. The FTC's hearing comes first, followed by Colorado, followed by Washington state.

Updated: 07/25/2024 at 1:04 PM MT to add further information about the Colorado case.