In a strategic move aimed at addressing antitrust concerns raised by the Federal Trade Commission, C&S Wholesale Grocers operator Kroger and Albertsons have announced the sale of 413 stores for a total of $1.9 billion as part of their $25 billion merger plan.
The divestiture will see these stores being acquired by C&S Wholesale Grocers, a prominent player in the industry based in New Hampshire
This transaction will substantially bolster C&S Wholesale Grocers’ retail presence, adding over 500 stores to its portfolio, thereby fortifying its supply network to nearly 7,500 supermarkets across the nation.
Among the key assets changing hands are C&S Wholesale Grocers retail operations, which predominantly include over 100 Piggly Wiggly stores located in Wisconsin and the Carolinas, along with 11 Grand Union stores in New York and Vermont. Additionally, the company oversees the supply and franchising of the Piggly Wiggly brand to independent proprietors, extending its reach to over 500 supermarkets nationwide.
This significant deal will also have implications for the workforce, impacting “thousands” of employees at Kroger and Albertsons
However, specific details and estimates regarding these changes were not provided by the companies.
In parallel developments, Kroger disclosed its second fiscal quarter results and unveiled a tentative $1.2 billion national opioid settlement. As part of the C&S Wholesale Grocers divestiture arrangement, Kroger will relinquish two of its store banners, Marianno’s in Chicago and QFC in the Pacific Northwest. Meanwhile, Albertsons will divest the Carrs nameplate in Alaska and grant exclusive licensing of its brand name in Arizona, California, Colorado, and Wyoming. Both companies have indicated plans to rebrand some of the stores affected by this deal, thereby marking a transformative phase in the C&S Wholesale Grocers industry.
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