🛒 Kroger-Albertsons Merger: Northwest, Rockies, & Alaska Impact

[submariner]

A place to discuss the impact of the Kroger-Albertsons merger, specifically on the northwest, rockies, & Alaska regions.

[Super S]

The one thing that I am not seeing talked about is, if this merger does happen, what will happen to what's left of Haggen. It seems like it would make some sense to group those stores together with QFC.

[storewanderer]

The one thing that I am not seeing talked about is, if this merger does happen, what will happen to what's left of Haggen. It seems like it would make some sense to group those stores together with QFC.

Kroger could try to get the perimeters in Haggen running similar to what they are doing at Mariano's in terms of the added labor and extensive store prep (they need to keep the Haggen formulas/recipies for the Haggen Stores). It would be a good fit. Oh wait, they aren't going to have Mariano's anymore...

Tough to imagine the overpriced/underwhelming QFC perimeter program at Haggen (oh wait they won't have that either since that is a divest too).

I guess Haggen ends up with a standard Kroger perimeter program. That sounds a lot like QFC. That won't end well. Or a Safeway program, assuming that program even stays around...

[ClownLoach]

The one thing that I am not seeing talked about is, if this merger does happen, what will happen to what's left of Haggen. It seems like it would make some sense to group those stores together with QFC.

Kroger could try to get the perimeters in Haggen running similar to what they are doing at Mariano's in terms of the added labor and extensive store prep (they need to keep the Haggen formulas/recipies for the Haggen Stores). It would be a good fit. Oh wait, they aren't going to have Mariano's anymore...

Tough to imagine the overpriced/underwhelming QFC perimeter program at Haggen (oh wait they won't have that either since that is a divest too).

I guess Haggen ends up with a standard Kroger perimeter program. That sounds a lot like QFC. That won't end well. Or a Safeway program, assuming that program even stays around...

Haggen is such small potatoes in a combined Kroger and Albertsons organization it'll take a decade before they notice they own it. It seems self contained already and as such probably should stay that way. Sometimes it's cheaper not to change things.

[wyoretailman]

After hearing the six stores were to be devasted in Wyoming as part of the merger a friend of mine came up with a possible list of these stores.

• Albertsons: Cheyenne - Pershing
  Albertsons: Cheyenne - Yellowstone
  Albertsons: Casper - CY
  Albertsons: Gillette
  Albertsons: Jackson Hole
  Albertsons: Rock Springs

This looks like a plausible list to me simply based on proximity to Kroger stores (King Soopers or Smith's). Now I just need him to come up with a list for Colorado.

[retailfanmitchell019]

After hearing the six stores were to be devasted in Wyoming as part of the merger a friend of mine came up with a possible list of these stores.

• Albertsons: Cheyenne - Pershing
  Albertsons: Cheyenne - Yellowstone
  Albertsons: Casper - CY
  Albertsons: Gillette
  Albertsons: Jackson Hole
  Albertsons: Rock Springs

This looks like a plausible list to me simply based on proximity to Kroger stores (King Soopers or Smith's). Now I just need him to come up with a list for Colorado.

I expect a lot of rural mountain town Safeways in CO (where City Market is the only competition in some cases) getting divested, along with CO's two remaining Albertsons (Durango and Pueblo).
I also wonder if the FTC can say "Kroger and Albertsons are the only unionized grocers operating in Colorado, they should divest much more in the state than the proposed 52 Albertsons stores". In that case, they should divest every Safeway/Albertsons competing with a King Soopers/City Market in the same census tract.
I expect if C&S backs out of the deal, AWG and AFS members will buy divested Albertsons assets in CO.

With only one potential strong traditional grocer operating in the Denver metro, I think Hy-Vee really needs to come to Denver.

[storewanderer]

After hearing the six stores were to be devasted in Wyoming as part of the merger a friend of mine came up with a possible list of these stores.

• Albertsons: Cheyenne - Pershing
  Albertsons: Cheyenne - Yellowstone
  Albertsons: Casper - CY
  Albertsons: Gillette
  Albertsons: Jackson Hole
  Albertsons: Rock Springs

This looks like a plausible list to me simply based on proximity to Kroger stores (King Soopers or Smith's). Now I just need him to come up with a list for Colorado.

I expect a lot of rural mountain town Safeways in CO (where City Market is the only competition in some cases) getting divested, along with CO's two remaining Albertsons (Durango and Pueblo).
I also wonder if the FTC can say "Kroger and Albertsons are the only unionized grocers operating in Colorado, they should divest much more in the state than the proposed 52 Albertsons stores". In that case, they should divest every Safeway/Albertsons competing with a King Soopers/City Market in the same census tract.
I expect if C&S backs out of the deal, AWG and AFS members will buy divested Albertsons assets in CO.

With only one potential strong traditional grocer operating in the Denver metro, I think Hy-Vee really needs to come to Denver.

As much as I'd like it, I don't see Hy-Vee touching Denver. Some of the issues that caused them problems that pressured profits in MN seem to be present in Denver (Target has a strong grocery business in Denver). Publix to Denver could be an interesting one...

There is a lot of opportunity for additional ethnic and niche grocers in Denver though.

C&S won't back out of the deal. This is a great deal for C&S.

[marshd1000]

The one thing that I am not seeing talked about is, if this merger does happen, what will happen to what's left of Haggen. It seems like it would make some sense to group those stores together with QFC.

Kroger could try to get the perimeters in Haggen running similar to what they are doing at Mariano's in terms of the added labor and extensive store prep (they need to keep the Haggen formulas/recipies for the Haggen Stores). It would be a good fit. Oh wait, they aren't going to have Mariano's anymore...

Tough to imagine the overpriced/underwhelming QFC perimeter program at Haggen (oh wait they won't have that either since that is a divest too).

I guess Haggen ends up with a standard Kroger perimeter program. That sounds a lot like QFC. That won't end well. Or a Safeway program, assuming that program even stays around...

Kroger is keeping most of Harris Teeter. Maybe they would run Haggen like them?

[ClownLoach]

The one thing that I am not seeing talked about is, if this merger does happen, what will happen to what's left of Haggen. It seems like it would make some sense to group those stores together with QFC.

Kroger could try to get the perimeters in Haggen running similar to what they are doing at Mariano's in terms of the added labor and extensive store prep (they need to keep the Haggen formulas/recipies for the Haggen Stores). It would be a good fit. Oh wait, they aren't going to have Mariano's anymore...

Tough to imagine the overpriced/underwhelming QFC perimeter program at Haggen (oh wait they won't have that either since that is a divest too).

I guess Haggen ends up with a standard Kroger perimeter program. That sounds a lot like QFC. That won't end well. Or a Safeway program, assuming that program even stays around...

Kroger is keeping most of Harris Teeter. Maybe they would run Haggen like them?

Why change what isn't broken?

[storewanderer]

Kroger could try to get the perimeters in Haggen running similar to what they are doing at Mariano's in terms of the added labor and extensive store prep (they need to keep the Haggen formulas/recipies for the Haggen Stores). It would be a good fit. Oh wait, they aren't going to have Mariano's anymore...

Tough to imagine the overpriced/underwhelming QFC perimeter program at Haggen (oh wait they won't have that either since that is a divest too).

I guess Haggen ends up with a standard Kroger perimeter program. That sounds a lot like QFC. That won't end well. Or a Safeway program, assuming that program even stays around...

Kroger is keeping most of Harris Teeter. Maybe they would run Haggen like them?

Why change what isn't broken?

Harris Teeter has separate distribution and even a lot of separate systems/IT from Kroger. The loyalty program is semi integrated but not entirely. It also still has separate private label in many categories though it does have the Simple Truth and maybe Private Selection line. Also a number of Harris Teeter brand items are manufactured at Kroger plants.

Harris Teeter is less integrated into Kroger than United-TX is integrated into the large Safeway ship.

At this point Haggen has already been integrated into Safeway from a systems perspective, fully on their private labels, but hasn't switched to many of their fresh/perimeter programs. Also Haggen still does its own ad, does some limited buying for only its stores, and still runs a number of its own fresh/perimeter programs. While it would be smart for Kroger to keep Haggen doing what it does I am not sure. One interesting play could be when Kroger gives QFC to C&S (good riddance), the remaining QFC Stores could be converted into Haggen Stores and follow the Haggen format and programs. I really do believe that Haggen's original format as they ran in WA/OR for decades is a winner with potential and could be a good fit for former QFC Stores. The thing they tried to run in the divested Albertsons/Safeway/Vons units was nothing like the true Haggen format.