Kroger Co., parent of Fry’s Food Stores and other supermarkets, has identified 101 Arizona supermarkets it plans to divest to win regulatory approval for its $24.6 billion purchase of Albertsons Cos.
Kroger, the parent of Fry’s Food Stores and other supermarkets, has identified more than 100 Arizona supermarkets it plans to divest to win approval for its proposed $24.6 billion purchase of Albertsons Cos.
The 101 Arizona supermarkets — all Safeway and Albertsons locations — would be sold to C&S Wholesale Grocers, a company with few regional ties, according to azcentral.
The divestitures are designed to ease regulators’ concerns that a combined Kroger-Albertsons company would enjoy a concentrated share of the grocery business in Arizona and several other states. The proposed 101 stores to be divested in Arizona are the second most of any state, trailing only 124 planned store transfers in Washington state. Colorado is third with 91 stores.
Regulators, including the Federal Trade Commission, Arizona Attorney General Kris Mayes, and her counterparts in several other states, mostly Democratic officials, are seeking to block the sale.
Kroger, which also owns some Smith’s supermarkets in northwest Arizona, contends the merger is necessary for it to remain competitive against nonunion grocery rivals, including Walmart, Amazon, Target and others.
Some 20 Safeway or Albertsons within Phoenix city limits are on tap to be transferred to C&S, which mostly operates in the eastern U.S. That’s in addition to 10 each in Scottsdale and Mesa. In addition, Kroger said it plans to unload two Albertsons distribution centers, at 7600 W. Van Buren St. in Phoenix and 400 S. 99th Ave. in Tolleson.
The Phoenix stores slated for divesture:
Albertsons — 3130 W. Carefree Hwy.
Albertsons — 8035 N. 19th Avenue
Albertsons — 21001 N. Tatum Blvd. Suite 76
Albertsons — 18411 N. Cave Creek Road
Safeway — 3655 W. Anthem Way
Safeway — 4005 E. Chandler Boulevard
Safeway — 6202 S. 16th Street
Safeway — 4811 N. 83rd Avenue
Safeway — 1334 E. Chandler Boulevard
Safeway — 5035 W. Baseline Road
Safeway — 4747 E. Elliot Road
Safeway — 520 W. Osborn Road
Safeway — 3132 E. Camelback Road
Safeway — 3450 W. Bell Road
Safeway — 340 E. McDowell Road
Safeway — 810 E. Glendale Avenue
Safeway — 13440 N. Seventh Street
Safeway — 4747 E. Greenway Road
Safeway — 4750 E. Indian School Road
Safeway — 550 E. Bell Road
View the complete list of Arizona divestitures.
Kroger and Albertsons Cos. are among the biggest employers in Arizona. Kroger counted 20,200 statewide employees and Albertsons, 14,500, in last year’s Republic 100 report on largest statewide employers.
If the deal goes through, Kroger would retain 34 Albertsons and Safeway locations in Arizona, plus the 131 Fry’s and Smith’s it already has in the state.
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