Kroger to Sell Three Grants Pass Stores Amid Regulatory Scrutiny

Kroger, the parent company of Fred Meyer and QFC, has identified 62 Oregon stores it would sell off to a competitor to secure regulatory approval for its $24.6 billion proposed merger with Albertsons.

Portland, Oregon- In a move to appease antitrust regulators, Kroger Co. has announced it will divest 62 Oregon stores as part of a broader plan to secure approval for its $24.6 billion merger with Albertsons. The merger, first unveiled in October 2022, has faced significant regulatory hurdles, including a lawsuit from the Federal Trade Commission (FTC) aimed at blocking the deal.

To address these concerns, Kroger and Albertsons have proposed selling 579 stores to C&S Wholesale Grocers for $2.9 billion. C&S Wholesale Grocers, based in New Hampshire, owns several store franchises, including Piggly Wiggly. The sale includes 124 stores in Washington, 62 in Oregon, and 10 in Idaho.

The FTC filed a lawsuit in February to stop the merger, arguing that it would reduce competition, leading to higher grocery prices and lower wages for workers. The merger represents approximately 20% of the U.S. grocery market, according to the USDA, and would affect one out of six grocery laborers if approved, according to the Bureau of Labor Statistics.

Initially, Kroger and Albertsons planned to sell 413 stores to C&S. However, the FTC deemed this plan “inadequate,” asserting that it would leave C&S with a disjointed mix of stores and brands, insufficient to compete effectively with the merged entity. In response, the companies revised their plan in April to divest a total of 579 stores in overlapping markets.

Albertsons, which owns Safeway, and Kroger are pushing for this merger to consolidate their market presence and streamline operations in a highly competitive industry. The proposed sale of stores is a critical step in their efforts to gain the necessary regulatory approval and proceed with the merger.

As the process unfolds, industry observers and stakeholders will be closely monitoring the impact of these divestitures on the grocery landscape and the broader implications for consumers and employees alike.

The Josephine County stores that would be sold to C&S Wholesale Grocers include:

• Albertsons – 1690 Allen Creek Rd, Grants Pass

• Safeway – 115 SE 7th St, Grants Pass

• Safeway – 1640 Williams Hwy, Grants Pass

At this time, there are no Fred Meyer, Safeway, or Kroger stores impacted in the Medford metro.