Idaho’s Albertsons may combine with national supermarket chain Kroger, report says
Albertsons Companies Inc., the Boise-based grocery giant, is in talks with Kroger Co. about combining, Bloomberg reported Thursday.
Cincinnati-based Kroger owns Fred Meyer, among other supermarket chains.
Bloomberg, citing unnamed sources, said an agreement would be one of the biggest retail transactions in years and could be reached by the end of the week, although no final decisions have been made.
Spokespersons for Albertsons and Kroger did not immediately respond to requests for comment.
In March, Albertsons undertook a strategic review to enhance the company’s growth and maximize shareholder value, according to previous reporting by the Idaho Statesman. The review came less than two years after the company made its debut as a publicly traded company.
Albertsons has over 2,200 stores in 34 states in the U.S. under banners including Albertsons, Safeway, Vons and Jewel-Osco, among other brands.
The company will release its financial results for the second quarter of fiscal 2022 on Tuesday.
Albertsons was founded in 1939 by Joe Albertson, a former Safeway district manager, according to the company’s website. The first store opened on 16th and State streets in Boise. After just a few years in business, he opened two other stores in neighboring communities and brought the company’s sales to more than $1 million by the end of 1941.
It’s now the country’s second-largest grocer behind Kroger.
The news of a potential merger was received favorably on the stock market, especially by Albertsons’ investors. Albertsons’s stock rose 11.5% Thursday, closing at $28.63. Kroger ended the day at $46.57, up 1% over its opening price of $46.04.
The American Economic Liberties Project, a consumer advocate group, slammed the possibility of an Albertsons-Kroger merger in a statement Thursday, saying the deal would be bad for consumers, workers and communities.
The statement said consolidation in the grocery sector has long been an issue, with over 60% of American grocery sales estimated to be concentrated among Albertsons, Kroger, Walmart, Amazon and Ahold Delhaize, according to the National Grocers Association.
This story was originally published October 13, 2022 at 12:47 PM.
