By LILY TINOCO | Assistant Editor
Kroger and Albertsons Companies announced a merger agreement in October 2022, followed by plans to offload over 60 locations in California—including Vons in Pacific Palisades.
The Sunset Boulevard supermarket is among hundreds of stores, distribution centers and plant locations on a list released by the grocery companies, revealing which locations it plans to sell to C&S Wholesale Grocers, should the merger receive clearance.
The planned divestiture of the stores is part of the grocery chains’ efforts to secure regulatory approval, addressing increasing concerns that the merger will lead to higher prices of items, store closures and, subsequently, job losses.
In February 2024, the United States Federal Trade Commission and eight states sued to block the grocery chain merger, saying the proposed deal would “eliminate fierce competition between Kroger and Albertsons,” leading to higher prices for groceries and other household items.
“Executives for both Kroger and Albertsons have acknowledged that the two supermarkets are direct competitors, forcing each other to aggressively compete for customers by lowering prices,” according to the FTC. “Similarly, executives for both supermarket chains have conceded that Kroger’s acquisition of Albertsons is anticompetitive, with one executive reacting candidly to the proposed deal: ‘You are basically creating a monopoly in grocery with the merger.’”
In April 2024, Kroger and Albertsons Companies announced that they would amend their agreement—expanding their planned sale of grocery stores, offloading an additional 166 locations than previously agreed upon.
“The amended divestiture package responds to concerns raised by federal and state antitrust regulators regarding the original agreement,” according to a press release. “The companies believe the amended divestiture package will bolster their position in regulatory challenges to the proposed merger, including pending court proceedings.”
Kroger and Albertsons Companies plan to sell 579 stores across the nation. The 63 California stores consist of 15 Albertsons locations, 31 Vons locations, 16 Pavilions locations and one Safeway.
The grocers shared the list ahead of a trial expected in August, which should decide the outcome of the deal.
According to Bloomberg, the companies have started notifying staff at affected locations, and impacted workers would become employees of C&S Wholesale Grocers.
“The divestiture plan ensures no stores will close as a result of the merger and that all frontline associates will remain employed,” Albertsons Companies shared in a statement to the Palisadian-Post. “Furthermore, associates will also continue to receive the competitive wages and benefits that they do today, maintaining their pay, health and wellness plans, and all collective bargaining agreements whether they are in place.”
The Sunset Boulevard store opened as a Safeway in January 1969 and became a Vons in April 1989. It has since served as one of the grocery stores in the Palisades, alongside Gelson’s, Ralphs, Ronny’s Market and Erewhon.
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