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Albertsons unveils list of 63 California stores to be sold ahead of trial

July 9, 2024

By Jaewon Kang and Leah Nylen | Bloomberg

Kroger Co. released the full list of stores, distribution centers and plants — including 63 supermarkets in California — that it plans to divest to secure approval for the proposed merger with Albertsons Cos.

The companies have started notifying staff at affected locations, Chief Executive Officer Rodney McMullen wrote in a memo to employees on Tuesday.

Workers will become employees of C&S Wholesale Grocers after the transaction closes, McMullen wrote, and will remain as Kroger and Albertsons staff until then. C&S has committed to transferring pay and health plans and assuming all collective bargaining agreements, he added.

The grocers, which announced their $25 billion merger in October 2022, are sharing the list ahead of a trial expected in August that will decide the outcome of their deal.

Kroger and Albertsons agreed to sell a package of stores and other facilities to C&S, boosting the number to 579 from 413 in April after the Federal Trade Commission blocked the tie-up.

The list also includes 124 stores in Washington state, 101 in Arizona and 91 in Colorado, among others. Most of the California stores are in Southern California.

The divestment package also includes a dairy plant in Colorado, as well as six distribution centers across four states.

Together, Kroger and Albertsons have nearly 5,000 stores across the country, including banners like Kroger, Ralphs, and Harris Teeter as well as Albertsons, Safeway, Acme and Jewel-Osco.

Kroger and Albertsons say they need the merger to compete with larger, non-unionized rivals Amazon.com, Walmart and Costco. The companies have pledged to invest $500 million to cut prices and $1 billion to raise worker wages and benefits, in addition to $1.3 billion to improve Albertsons stores.

The FTC’s complaint alleges the deal would harm consumers by eliminating competition on prices and quality, making the combined firm less likely to improve its services by offering flexible hours and pickup services. It also would give the grocers increased leverage over workers, slowing wage growth and worsening benefits, according to the complaint.

Union workers in California also are protesting the planned merger, saying their jobs could be in jeopardy in any divestiture.

The FTC has also alleged that C&S would face significant challenges stitching together the various stores acquired from the grocers, and deems the grocers’ proposed divestiture package inadequate. In 2015, the agency allowed Albertsons to buy Safeway after it sold 168 stores, the bulk of them to Washington state grocer Haggen Holdings LLC. Less than a year later, Haggen filed for bankruptcy and Albertsons bought back a number of the stores.

The list of stores to be sold to C&S includes dozens of locations that Albertsons reacquired, including 12 Haggen stores in Washington.

The Haggen brand will spark the many memories among Southern California shoppers, who saw 70 grocery stores in the region convert to the Pacific Northwest banner nine years ago.

The grocer bought 146 stores in the Albertsons-Safeway divestiture in 2015. Haggen’s concept, which touted itself as Albertsons meets Whole Foods, didn’t take with shoppers who complained of high prices. The banner would be gone in just six months. The vacant properties left behind in Haggen’s exit languished for years, only recently updating to new names such as Rivera Food Service or familiar chains like Gelson’s and 99 Ranch Market.

Here is the list of California stores that Kroger and Albertsons said would be sold to C&S Wholesale:

15 Albertsons changing banners

Albertsons — 33601 Del Obispo St., Dana Point

Albertsons — 7201 Yorktown Ave., Huntington Beach

Albertsons — 16600 Bolsa Chica St., Huntington Beach

Albertsons — 804 Avenida Pico, San Clemente

Albertsons — 200 E Sepulveda Blvd., Carson

Albertsons — 3901 Crenshaw Blvd, Los Angeles

Albertsons — 9022 Balboa Blvd., Northridge

Albertsons — 541 S Reino Road, Newbury Park

Albertsons — 543 Sweetwater Road, Spring Valley

Albertsons — 42095 Washington St., Palm Desert

Albertsons — 1751 N Sunrise Way Ste 1, Palm Springs

Albertsons — 2899 Jamacha Road, El Cajon

Albertsons — 23893 Clinton Keith Rd, Wildomar

Albertsons — 1500 N H St., Lompoc

Albertsons — 730 Quintana Road, Morro Bay

31 Vons stores changing banners

Vons — 5671 Kanan Road, Agoura Hills

Vons — 301 N Pass Ave, Burbank

Vons — 500 E Manchester Blvd., Inglewood

Vons — 3233 Foothill Blvd, La Crescenta

Vons — 3118 S Sepulveda Blvd., Los Angeles

Vons — 3461 W 3rd St., Los Angeles

Vons — 1430 S Fairfax Ave., Los Angeles

Vons — 6571 W 80th St., Los Angeles

Vons — 2039 Verdugo Blvd., Montrose

Vons — 17380 Sunset Blvd, Pacific Palisades

Vons — 410 Manhattan Beach Blvd, Manhattan Beach

Vons — 25850 The Old Road, Stevenson Ranch

Vons — 4033 Laurel Canyon Blvd., Studio City

Vons — 18439 Ventura Blvd., Tarzana

Vons — 7789 Foothill Blvd., Tujunga

Vons — 6040 Telegraph Road, Ventura

Vons — 1440 W 25th St., San Pedro

Vons — 185 E 17th St., Costa Mesa

Vons — 11322 Los Alamitos Blvd., Los Alamitos

Vons — 1820 Ximeno Ave., Long Beach

Vons — 78271 Hwy 111, La Quinta

Vons — 6951 El Camino Real, Carlsbad

Vons — 3439 Via Montebello, Carlsbad

Vons — 2606 Del Mar Heights Road, Del Mar

Vons — 4733 E Palm Canyon Drive, Palm Springs

Vons — 11986 Bernardo Plaza Drive, San Diego

Vons — 1702 Garnet Ave., San Diego

Vons — 2495 Truxtun Road, Suite 100, San Diego

Vons — 9643 Mission Gorge Road, Santee

Vons — 820 Arneill Road, Camarillo

Vons — 163 S Turnpike Road, Santa Barbara

16 Pavilions changing banners

Pavilions — 600 N Pacific Coast Hwy., Laguna Beach

Pavilions — 2660 San Miguel Drive, Newport Beach

Pavilions — 1000 Bayside Drive, Newport Beach

Pavilions — 989 Avenida Pico, San Clemente

Pavilions — 1101 Pacific Coast Hwy., Seal Beach

Pavilions — 4365 Glencoe Ave, Marina del Rey

Pavilions — 29211 Heathercliff Road, Malibu

Pavilions — 9467 W Olympic Blvd., Beverly Hills

Pavilions — 1110 W Alameda Ave., Burbank

Pavilions — 11030 Jefferson Blvd., Culver City

Pavilions — 7 Peninsula Center, Palos Verdes Peninsula

Pavilions — 14845 Ventura Blvd, Sherman Oaks

Pavilions — 6534 Platt Ave., West Hills

Pavilions — 8969 Santa Monica Blvd., West Hollywood

Pavilions — 3850 Valley Centre Drive, San Diego

Pavilions — 7544 Girard Ave., La Jolla

One lone Safeway at 1499 Washington Ave. in the Bay Area city of San Leandro is switching banners.

Staff writer Samantha Gowen contributed to this report.

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Orange County Register

News Details

Albertsons unveils list of 63 California stores to be sold ahead of trial

15 Albertsons changing banners

31 Vons stores changing banners

16 Pavilions changing banners

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