Supermarket giant Kroger Co. has revealed plans to sell off more than 60 supermarkets in California as part of its proposed merger with Albertsons. The 63 stores, primarily located in Southern California, are included in a larger list of locations that the companies intend to divest to C&S Wholesale Grocers pending approval from federal regulators. This move is aimed at addressing concerns raised by the Federal Trade Commission regarding competition and potential consumer impact from the mega-merger.
The sale of these stores and facilities, valued at $2.9 billion in April, is part of efforts to alleviate regulatory barriers to the Kroger-Albertsons merger. The affected workers at these locations will transition to becoming employees of C&S Wholesale Grocers, ensuring continuity in pay, health plans, and collective bargaining agreements. While Kroger and Albertsons argue that the merger is necessary to compete with nonunionized giants like Amazon, Walmart, and Costco, opposition from United Food and Commercial Workers union locals in California persists due to concerns about the impact on workers, shoppers, suppliers, and communities.
In light of the impending trial in August that will determine the fate of the merger, tensions remain high as Kroger and Albertsons defend their $25-billion deal amid challenges from regulators and unions. The grocery giants are facing scrutiny over potential antitrust violations and the effects on consumers and workers in the grocery industry. With significant stakes involved, the outcome of this merger remains uncertain as both sides continue to present their arguments and make preparations for the final decision.
