Kroger to Sell 35 Chicago Area Stores for Albertsons Merger

In a significant development in the grocery industry, Kroger and Albertsons, two major grocers in the United States, had agreed to merge in October 2022. However, this merger faced a hurdle when the Federal Trade Commission filed a lawsuit in February of the following year, citing concerns that the $24.6 billion deal could potentially lead to increased prices for millions of American consumers. The United Food and Commercial Workers union, representing over 835,000 grocery workers in the U.S. and Canada, also opposed the merger, criticizing the lack of transparency from Kroger and Albertsons regarding its impact on workers. As a result of the regulatory challenges, Kroger and Albertsons were required to divest 413 stores and eight distribution centers in areas where their operations overlapped. These divested assets were subsequently acquired by C&S Wholesale Grocers, the parent company of Piggly Wiggly and Grand Union supermarkets. Among the stores included in this divestiture were Mariano's and Jewel-Osco locations in various Chicago neighborhoods and suburbs, such as Bloomingdale, Chatham, Roscoe Village, Jefferson Park, Crystal Lake, and Palos Heights. Mariano's, a popular Chicago-area supermarket chain under Roundy's, played a significant role in this transaction, with its first store opening in 2010. Additionally, the emergence of Dom's stores in 2021, later merging with the Foxtrot Market chain to form Outfox Hospitality, added to the evolving landscape of grocery retail. The move by C&S Wholesale Grocers to acquire the divested stores aligns with its strategic expansion plans and further solidifies its presence in the competitive grocery market. Overall, the divestiture and acquisition of stores and distribution centers by C&S Wholesale Grocers mark a pivotal moment in the grocery industry, reshaping the competitive dynamics among major players. The regulatory scrutiny faced by Kroger and Albertsons underscores the importance of transparency and competition in ensuring fair pricing and working conditions for consumers and employees alike.