Washington grocery sites could face reshuffling as Kroger-Albertsons merger unfolds
The planned merger of Kroger and Albertsons Companies Inc., officially announced Friday, is set to bring more grocery store reshuffling in Washington state.
A previous buyout creates overlap with the two chains that could lead to some stores spun out from the deal.
Albertsons in 2016 bought the remaining core of Bellingham-based Haggen stores after Haggen filed for bankruptcy and a legal battle between the two over Haggen’s failed expansion bid involving the purchase of 146 West Coast Vons, Pavilions, Albertsons and Safeway stores.
The result was 29 “core” Haggen sites rebranded under the Albertsons umbrella, resulting in a local grocery retail world now in which there is a Safeway store, for example, mere blocks away from Kroger’s Fred Meyer in Gig Harbor.
The two grocery giants on Friday announced that they would spin off between 100 and 375 stores into a new company to head off Federal Trade Commission concerns about excessive market concentration, The Idaho Statesman reported.
Ahead of Friday’s announcement, unions representing Pacific Northwest workers for both Kroger and Albertsons/Safeway spoke out against the merger on Thursday.
“The proposed merger of these two grocery giants is devastating for workers and consumers alike and must be stopped,” Faye Guenther, president of UFCW 3000, said in a statement. “Just as our UFCW workers stood together to negotiate landmark new contracts with both Kroger and Albertsons/Safeway within the last year across the western US, we will stand united to fight for access to nutritious food, a safe shopping experience, and investments in good jobs in our communities.”
Unions listed in the joint statement with UFCW 3000 included UFCW 7, UFCW 324, UFCW 367 and UFCW 770.
In the joint news release from unions representing area grocery workers, it said: “UFCW’s members have been a leading national voice on enforcing federal and state antitrust laws as well as forwarding the values of protecting a fair marketplace that prevents corporations from using monopoly power to exploit customers and workers. We are asking the appropriate administrative and elected officials to step in and stop this merger and protect workers and consumers.”
Market analysts already were noting the significant brand overlap in some parts of the country from past acquisitions involving both chains.
Eleanor Fox, a New York University professor who specializes in antitrust and competition policy, told NBC News on Friday that a merger would be less likely to gain approval if they are the top two grocers in many markets.
Southern California, Colorado, the Puget Sound region and parts of the Midwest and Texas are among the dense overlap areas, one analyst noted.
This story was originally published October 14, 2022 at 12:31 PM with the headline "Washington grocery sites could face reshuffling as Kroger-Albertsons merger unfolds."
