Kroger Reveals Stores To Be Shed To C&S Wholesale
The Kroger Co. has released the list of stores it plans to divest to C&S Wholesale Grocers as part of its still-pending merger with Albertsons Cos.
The 579 locations are in 18 states and the District of Columbia with the plan also including six distribution centers in six states and a plant in Colorado. Store Brands’ sister publication Progressive Grocer reported Kroger CEO Rodney McMullen sent a letter to employees impacted by the divesture, which in part read “the company is confident that C&S will provide the transferred associates stability and opportunities to further enrich their careers with a growing company.”
The letter went on to say, “Together, we have committed that no frontline workers will lose their jobs and no stores will close as a result of the merger, which is true for stores that remain with Kroger and those that are transferred to C&S. C&S has also committed to maintaining transferred associates’ pay and health and wellness plans and to assume all collective bargaining agreements.”
The move to sell stores to C&S was announced in September 2023 and at the time included some 400 locations in 17 states and Washington, D.C. Also included in the original announcement were eight distribution centers, two offices and five private label brands. In April of this year, Kroger updated the agreement with C&S and added 166 stores.
Expanding the store count in the C&S deal came two months after the Federal Trade Commission’s decision to block the merger between the two grocery giants. The FTC said the proposed deal will eliminate “fierce competition” between the two companies.
The sale of stores to C&S includes banners QFC, Mariano’s, Haggen, and Carrs. Stores currently under these banners that are retained by Kroger will be re-bannered into one of the retained Kroger or Albertsons Cos. banners following the close of the transaction with C&S.
Under the amended agreement, C&S will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. In these states, Kroger will re-banner the retained Albertsons and Safeway bannered stores following the closing of the merger. Kroger will maintain the Albertsons and Safeway banners in the remaining states.
