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

[babs]

Interesting story: https://www.oregonlive.com/business/202 ... ungry.html

Fred Meyer, Albertsons internal documents show fierce competition in Portland before merger talks: ‘We must stay hungry’
Published: Apr. 10, 2024, 10:26 a.m.

By Kristine de Leon | The Oregonian/OregonLive
New filings in the Federal Trade Commission’s lawsuit to block Kroger’s $24.6 billion bid to buy its next largest rival, Albertsons Co., detail the fierce competition between the two companies in Portland.

Kroger is the parent company of Fred Meyer and QFC, while Albertsons owns Safeway. In Portland and other markets where the companies have significant overlap, a fight for market share between the two has helped keep grocery prices down and the quality of products and services up, federal regulators argued in a lawsuit filed on Feb. 21.

“We must stay hungry, sharp and on top of our business. Kroger is hurting and looking to gain share back. WE MUST NOT LET THEM,” Albertsons’s vice president of marketing and merchandising wrote in an internal email about Kroger’s promotional ads in Portland, according to newly unredacted passages in the suit filed in federal court in Portland.

Kroger executives, in turn, refer in internal communications to Albertsons and Safeway stores as their “#1 direct competitor” and “biggest competitors.”

The statements were previously censored over concerns that they contained confidential information that could competitively harm Kroger and Albertsons.

The Federal Trade Commission initially filed a heavily redacted version of its lawsuit to block what would be the largest supermarket merger in U.S. history, along with an unredacted copy that still remains under seal. On Tuesday, the federal court in Portland filed an amended version of the public version of the lawsuit that revealed dozens of previously redacted passages.

The newly unveiled statements contained in the lawsuit adds more texture to the Federal Trade Commission case against the proposed merger, which regulators say would hurt both customers and workers. They argue the deal would reduce competition in the grocery industry, resulting in higher food prices and lower wages for workers, and they lean on the companies’ own words to make the case.

Kroger and Albertsons have structured their deal to introduce a new competitor to the markets where they overlap by selling stores to a grocery supplier, C&S Wholesale Grocers. The much smaller company operates a handful of stores in the Northeast and licenses the Piggly Wiggly brand in the South and Midwest to store operators.

In another newly unsealed statement, a Kroger executive acknowledged after the deal was announced that “Albertsons has made a lot of improvements in many of their stores” in markets that would be impacted by the merger, which regulators say illustrate how the two companies pit themselves against one another, which pushes the grocers to raise their quality and offerings to gain customers.

Other unredacted sections provide a better picture of the government’s case on how a merger would impact unionized stores. Federal regulators argued that Kroger and Albertsons have largely unionized workforces, enabling the unions to pit the competitors against one another to gain leverage during contract negotiations.

Another unredacted passage indicates that an Albertsons’ labor executive refers to Kroger “bargaining competitor” since the two companies “compete for sales and talent while engaging in bargaining with local unions at the same time.”

The Federal Trade Commission alleged that, in 2019, Kroger and Albertsons “successfully coordinated” in negotiations with Portland union workers that led to less favorable wages and working conditions for employees. It also allowed Kroger to “push through” a “reduction in healthcare reserve funding,” according to a newly unredacted passage.

The merger, federal regulators say, would serve to formalize those backchannel strategizing.

“The proposed acquisition is ‘a way out of it’ that would allow (Kroger and Albertsons) to have total alignment in future negotiations, to the detriment of union grocery workers,” federal regulators alleged.

United Food and Commercial Workers Local 555 — which represents the majority of workers at Albertsons, Safeway, Fred Meyer and QFC in Oregon and parts of Washington — endorsed the deal in January, saying that the deal would have a better outcome for workers than Albertsons’ sale to a different buyer.

But the union’s national umbrella and many other local chapters, as well as the Teamsters union that represents warehouse and transportation workers, have opposed the merger.

The newly unredacted complaint also shed more light on regulators’ concerns about Kroger and Albertsons’ divestiture plan. Last fall, the two companies promised to preserve competition under their merger deal by selling more than 400 stores to New Hampshire-based C&S for $1.9 billion. That sale would include at least 49 stores in Oregon.

The Federal Trade Commission argued that C&S lacks the experience in the food retail market and would “face multiple significant obstacles stitching together a viable business” that would make it a viable competitor.

Newly cleared sections suggest that C&S lacks experience running a grocery operation and that “even C&S admits, the proposed divestiture lacks the scale and necessary assets” that Kroger and Albertsons “rely on today to successfully operate their respective businesses.”

While the two supermarket giants and C&S have said that the merger won’t result in store closures, federal regulators alleged that “C&S admits that these commitments have no legally binding effect or duration, and C&S has reserved its right to close or sell supermarkets once the transition is completed.”

In newly uncensored sections, federal regulators cited internal company documents in which C&S contemplated selling the real estate it acquires in the deal, then leasing it back — recouping $1.5 billion of its purchase costs but potentially putting individual stores in a more vulnerable position, subject to the whims of a third-party landlord.

Lauren La Bruno, spokesperson for C&S Wholesale Grocers, said that the company “is deeply committed to our transformation strategy, which includes the expansion of our retail footprint.”

“C&S has an experienced management team with an extensive background in food retail and distribution and has the financial strength to continue investing in associates and the business,” La Bruno added. She also contends that the company has “a strong track record as a successful grocery retailer” that serves 7,500 independent supermarkets, retail chain stores and military bases.

But the Federal Trade Commission argues that C&S currently operates only 23 retail supermarkets — under the Piggly-Wiggly and Grand Union banners — and only one retail pharmacy. The rest of the stores are not operated by C&S, as the company acts as their supplier.

C&S acquired most of the stores it owns and operates in 2021 and 2022, regulators argued, making the company a “poor choice for a divestiture buyer” that would increase the likelihood that the divested stores would “flounder or fail.”

Kroger and Albertsons are two of Oregon’s biggest grocery chains, with more than 170 stores altogether under the Fred Meyer, QFC, Albertsons and Safeway brands. Kroger did not respond to inquiries on Tuesday, and Albertsons officials declined to comment on the lawsuit’s newly unredacted details.

[ClownLoach]

Interesting story: https://www.oregonlive.com/business/202 ... ungry.html

Fred Meyer, Albertsons internal documents show fierce competition in Portland before merger talks: ‘We must stay hungry’
Published: Apr. 10, 2024, 10:26 a.m.

By Kristine de Leon | The Oregonian/OregonLive
New filings in the Federal Trade Commission’s lawsuit to block Kroger’s $24.6 billion bid to buy its next largest rival, Albertsons Co., detail the fierce competition between the two companies in Portland.

Kroger is the parent company of Fred Meyer and QFC, while Albertsons owns Safeway. In Portland and other markets where the companies have significant overlap, a fight for market share between the two has helped keep grocery prices down and the quality of products and services up, federal regulators argued in a lawsuit filed on Feb. 21.

“We must stay hungry, sharp and on top of our business. Kroger is hurting and looking to gain share back. WE MUST NOT LET THEM,” Albertsons’s vice president of marketing and merchandising wrote in an internal email about Kroger’s promotional ads in Portland, according to newly unredacted passages in the suit filed in federal court in Portland.

Kroger executives, in turn, refer in internal communications to Albertsons and Safeway stores as their “#1 direct competitor” and “biggest competitors.”

The statements were previously censored over concerns that they contained confidential information that could competitively harm Kroger and Albertsons.

The Federal Trade Commission initially filed a heavily redacted version of its lawsuit to block what would be the largest supermarket merger in U.S. history, along with an unredacted copy that still remains under seal. On Tuesday, the federal court in Portland filed an amended version of the public version of the lawsuit that revealed dozens of previously redacted passages.

The newly unveiled statements contained in the lawsuit adds more texture to the Federal Trade Commission case against the proposed merger, which regulators say would hurt both customers and workers. They argue the deal would reduce competition in the grocery industry, resulting in higher food prices and lower wages for workers, and they lean on the companies’ own words to make the case.

Kroger and Albertsons have structured their deal to introduce a new competitor to the markets where they overlap by selling stores to a grocery supplier, C&S Wholesale Grocers. The much smaller company operates a handful of stores in the Northeast and licenses the Piggly Wiggly brand in the South and Midwest to store operators.

In another newly unsealed statement, a Kroger executive acknowledged after the deal was announced that “Albertsons has made a lot of improvements in many of their stores” in markets that would be impacted by the merger, which regulators say illustrate how the two companies pit themselves against one another, which pushes the grocers to raise their quality and offerings to gain customers.

Other unredacted sections provide a better picture of the government’s case on how a merger would impact unionized stores. Federal regulators argued that Kroger and Albertsons have largely unionized workforces, enabling the unions to pit the competitors against one another to gain leverage during contract negotiations.

Another unredacted passage indicates that an Albertsons’ labor executive refers to Kroger “bargaining competitor” since the two companies “compete for sales and talent while engaging in bargaining with local unions at the same time.”

The Federal Trade Commission alleged that, in 2019, Kroger and Albertsons “successfully coordinated” in negotiations with Portland union workers that led to less favorable wages and working conditions for employees. It also allowed Kroger to “push through” a “reduction in healthcare reserve funding,” according to a newly unredacted passage.

The merger, federal regulators say, would serve to formalize those backchannel strategizing.

“The proposed acquisition is ‘a way out of it’ that would allow (Kroger and Albertsons) to have total alignment in future negotiations, to the detriment of union grocery workers,” federal regulators alleged.

United Food and Commercial Workers Local 555 — which represents the majority of workers at Albertsons, Safeway, Fred Meyer and QFC in Oregon and parts of Washington — endorsed the deal in January, saying that the deal would have a better outcome for workers than Albertsons’ sale to a different buyer.

But the union’s national umbrella and many other local chapters, as well as the Teamsters union that represents warehouse and transportation workers, have opposed the merger.

The newly unredacted complaint also shed more light on regulators’ concerns about Kroger and Albertsons’ divestiture plan. Last fall, the two companies promised to preserve competition under their merger deal by selling more than 400 stores to New Hampshire-based C&S for $1.9 billion. That sale would include at least 49 stores in Oregon.

The Federal Trade Commission argued that C&S lacks the experience in the food retail market and would “face multiple significant obstacles stitching together a viable business” that would make it a viable competitor.

Newly cleared sections suggest that C&S lacks experience running a grocery operation and that “even C&S admits, the proposed divestiture lacks the scale and necessary assets” that Kroger and Albertsons “rely on today to successfully operate their respective businesses.”

While the two supermarket giants and C&S have said that the merger won’t result in store closures, federal regulators alleged that “C&S admits that these commitments have no legally binding effect or duration, and C&S has reserved its right to close or sell supermarkets once the transition is completed.”

In newly uncensored sections, federal regulators cited internal company documents in which C&S contemplated selling the real estate it acquires in the deal, then leasing it back — recouping $1.5 billion of its purchase costs but potentially putting individual stores in a more vulnerable position, subject to the whims of a third-party landlord.

Lauren La Bruno, spokesperson for C&S Wholesale Grocers, said that the company “is deeply committed to our transformation strategy, which includes the expansion of our retail footprint.”

“C&S has an experienced management team with an extensive background in food retail and distribution and has the financial strength to continue investing in associates and the business,” La Bruno added. She also contends that the company has “a strong track record as a successful grocery retailer” that serves 7,500 independent supermarkets, retail chain stores and military bases.

But the Federal Trade Commission argues that C&S currently operates only 23 retail supermarkets — under the Piggly-Wiggly and Grand Union banners — and only one retail pharmacy. The rest of the stores are not operated by C&S, as the company acts as their supplier.

C&S acquired most of the stores it owns and operates in 2021 and 2022, regulators argued, making the company a “poor choice for a divestiture buyer” that would increase the likelihood that the divested stores would “flounder or fail.”

Kroger and Albertsons are two of Oregon’s biggest grocery chains, with more than 170 stores altogether under the Fred Meyer, QFC, Albertsons and Safeway brands. Kroger did not respond to inquiries on Tuesday, and Albertsons officials declined to comment on the lawsuit’s newly unredacted details.

More proof C&S isn't a real, committed buyer. Kroger and Albertsons lied about them. No real surprises there. Zero commitment to run the stores. Sell and lease back all the real estate then sell the stores to sucker operators (IGA type) for a dollar each, a service agreement contracting them to C&S for their wholesale needs, and watch them all fold quickly to clear the field for the new Kroger Goliath company.

C&S proven again has no intentions of being what the government wants when stores are divested, a committed party who wants to operate them to compete in the market. They are not a "agile new competitor" but rather a quick buck liquidator.

They are going to have to void the C&S deal if they want any chance of completing this merger. But if they do, then those stores they expected C&S will effectively liquidate for them could stand tall as real competitors which would reduce the increased sales and profits they would expect in their combined company. Between that and the vastly reduced store count I really don't see how it is "worth it" for Kroger to move forward with this deal.

[babs]

Interesting story: https://www.oregonlive.com/business/202 ... ungry.html

Fred Meyer, Albertsons internal documents show fierce competition in Portland before merger talks: ‘We must stay hungry’
Published: Apr. 10, 2024, 10:26 a.m.

By Kristine de Leon | The Oregonian/OregonLive
New filings in the Federal Trade Commission’s lawsuit to block Kroger’s $24.6 billion bid to buy its next largest rival, Albertsons Co., detail the fierce competition between the two companies in Portland.

Kroger is the parent company of Fred Meyer and QFC, while Albertsons owns Safeway. In Portland and other markets where the companies have significant overlap, a fight for market share between the two has helped keep grocery prices down and the quality of products and services up, federal regulators argued in a lawsuit filed on Feb. 21.

“We must stay hungry, sharp and on top of our business. Kroger is hurting and looking to gain share back. WE MUST NOT LET THEM,” Albertsons’s vice president of marketing and merchandising wrote in an internal email about Kroger’s promotional ads in Portland, according to newly unredacted passages in the suit filed in federal court in Portland.

Kroger executives, in turn, refer in internal communications to Albertsons and Safeway stores as their “#1 direct competitor” and “biggest competitors.”

The statements were previously censored over concerns that they contained confidential information that could competitively harm Kroger and Albertsons.

The Federal Trade Commission initially filed a heavily redacted version of its lawsuit to block what would be the largest supermarket merger in U.S. history, along with an unredacted copy that still remains under seal. On Tuesday, the federal court in Portland filed an amended version of the public version of the lawsuit that revealed dozens of previously redacted passages.

The newly unveiled statements contained in the lawsuit adds more texture to the Federal Trade Commission case against the proposed merger, which regulators say would hurt both customers and workers. They argue the deal would reduce competition in the grocery industry, resulting in higher food prices and lower wages for workers, and they lean on the companies’ own words to make the case.

Kroger and Albertsons have structured their deal to introduce a new competitor to the markets where they overlap by selling stores to a grocery supplier, C&S Wholesale Grocers. The much smaller company operates a handful of stores in the Northeast and licenses the Piggly Wiggly brand in the South and Midwest to store operators.

In another newly unsealed statement, a Kroger executive acknowledged after the deal was announced that “Albertsons has made a lot of improvements in many of their stores” in markets that would be impacted by the merger, which regulators say illustrate how the two companies pit themselves against one another, which pushes the grocers to raise their quality and offerings to gain customers.

Other unredacted sections provide a better picture of the government’s case on how a merger would impact unionized stores. Federal regulators argued that Kroger and Albertsons have largely unionized workforces, enabling the unions to pit the competitors against one another to gain leverage during contract negotiations.

Another unredacted passage indicates that an Albertsons’ labor executive refers to Kroger “bargaining competitor” since the two companies “compete for sales and talent while engaging in bargaining with local unions at the same time.”

The Federal Trade Commission alleged that, in 2019, Kroger and Albertsons “successfully coordinated” in negotiations with Portland union workers that led to less favorable wages and working conditions for employees. It also allowed Kroger to “push through” a “reduction in healthcare reserve funding,” according to a newly unredacted passage.

The merger, federal regulators say, would serve to formalize those backchannel strategizing.

“The proposed acquisition is ‘a way out of it’ that would allow (Kroger and Albertsons) to have total alignment in future negotiations, to the detriment of union grocery workers,” federal regulators alleged.

United Food and Commercial Workers Local 555 — which represents the majority of workers at Albertsons, Safeway, Fred Meyer and QFC in Oregon and parts of Washington — endorsed the deal in January, saying that the deal would have a better outcome for workers than Albertsons’ sale to a different buyer.

But the union’s national umbrella and many other local chapters, as well as the Teamsters union that represents warehouse and transportation workers, have opposed the merger.

The newly unredacted complaint also shed more light on regulators’ concerns about Kroger and Albertsons’ divestiture plan. Last fall, the two companies promised to preserve competition under their merger deal by selling more than 400 stores to New Hampshire-based C&S for $1.9 billion. That sale would include at least 49 stores in Oregon.

The Federal Trade Commission argued that C&S lacks the experience in the food retail market and would “face multiple significant obstacles stitching together a viable business” that would make it a viable competitor.

Newly cleared sections suggest that C&S lacks experience running a grocery operation and that “even C&S admits, the proposed divestiture lacks the scale and necessary assets” that Kroger and Albertsons “rely on today to successfully operate their respective businesses.”

While the two supermarket giants and C&S have said that the merger won’t result in store closures, federal regulators alleged that “C&S admits that these commitments have no legally binding effect or duration, and C&S has reserved its right to close or sell supermarkets once the transition is completed.”

In newly uncensored sections, federal regulators cited internal company documents in which C&S contemplated selling the real estate it acquires in the deal, then leasing it back — recouping $1.5 billion of its purchase costs but potentially putting individual stores in a more vulnerable position, subject to the whims of a third-party landlord.

Lauren La Bruno, spokesperson for C&S Wholesale Grocers, said that the company “is deeply committed to our transformation strategy, which includes the expansion of our retail footprint.”

“C&S has an experienced management team with an extensive background in food retail and distribution and has the financial strength to continue investing in associates and the business,” La Bruno added. She also contends that the company has “a strong track record as a successful grocery retailer” that serves 7,500 independent supermarkets, retail chain stores and military bases.

But the Federal Trade Commission argues that C&S currently operates only 23 retail supermarkets — under the Piggly-Wiggly and Grand Union banners — and only one retail pharmacy. The rest of the stores are not operated by C&S, as the company acts as their supplier.

C&S acquired most of the stores it owns and operates in 2021 and 2022, regulators argued, making the company a “poor choice for a divestiture buyer” that would increase the likelihood that the divested stores would “flounder or fail.”

Kroger and Albertsons are two of Oregon’s biggest grocery chains, with more than 170 stores altogether under the Fred Meyer, QFC, Albertsons and Safeway brands. Kroger did not respond to inquiries on Tuesday, and Albertsons officials declined to comment on the lawsuit’s newly unredacted details.

More proof C&S isn't a real, committed buyer. Kroger and Albertsons lied about them. No real surprises there. Zero commitment to run the stores. Sell and lease back all the real estate then sell the stores to sucker operators (IGA type) for a dollar each, a service agreement contracting them to C&S for their wholesale needs, and watch them all fold quickly to clear the field for the new Kroger Goliath company.

C&S proven again has no intentions of being what the government wants when stores are divested, a committed party who wants to operate them to compete in the market. They are not a "agile new competitor" but rather a quick buck liquidator.

They are going to have to void the C&S deal if they want any chance of completing this merger. But if they do, then those stores they expected C&S will effectively liquidate for them could stand tall as real competitors which would reduce the increased sales and profits they would expect in their combined company. Between that and the vastly reduced store count I really don't see how it is "worth it" for Kroger to move forward with this deal.

The fact that they bring up they think the real estate could be sold for $1.5 billion, covering most of the $1.9 billion purchase price shows their thinking. Just because you are the wholesaler to hundreds of stores and only run 23 stores yourself is pretty damning as well.

[ClownLoach]

Interesting story: https://www.oregonlive.com/business/202 ... ungry.html

Fred Meyer, Albertsons internal documents show fierce competition in Portland before merger talks: ‘We must stay hungry’
Published: Apr. 10, 2024, 10:26 a.m.

By Kristine de Leon | The Oregonian/OregonLive
New filings in the Federal Trade Commission’s lawsuit to block Kroger’s $24.6 billion bid to buy its next largest rival, Albertsons Co., detail the fierce competition between the two companies in Portland.

Kroger is the parent company of Fred Meyer and QFC, while Albertsons owns Safeway. In Portland and other markets where the companies have significant overlap, a fight for market share between the two has helped keep grocery prices down and the quality of products and services up, federal regulators argued in a lawsuit filed on Feb. 21.

“We must stay hungry, sharp and on top of our business. Kroger is hurting and looking to gain share back. WE MUST NOT LET THEM,” Albertsons’s vice president of marketing and merchandising wrote in an internal email about Kroger’s promotional ads in Portland, according to newly unredacted passages in the suit filed in federal court in Portland.

Kroger executives, in turn, refer in internal communications to Albertsons and Safeway stores as their “#1 direct competitor” and “biggest competitors.”

The statements were previously censored over concerns that they contained confidential information that could competitively harm Kroger and Albertsons.

The Federal Trade Commission initially filed a heavily redacted version of its lawsuit to block what would be the largest supermarket merger in U.S. history, along with an unredacted copy that still remains under seal. On Tuesday, the federal court in Portland filed an amended version of the public version of the lawsuit that revealed dozens of previously redacted passages.

The newly unveiled statements contained in the lawsuit adds more texture to the Federal Trade Commission case against the proposed merger, which regulators say would hurt both customers and workers. They argue the deal would reduce competition in the grocery industry, resulting in higher food prices and lower wages for workers, and they lean on the companies’ own words to make the case.

Kroger and Albertsons have structured their deal to introduce a new competitor to the markets where they overlap by selling stores to a grocery supplier, C&S Wholesale Grocers. The much smaller company operates a handful of stores in the Northeast and licenses the Piggly Wiggly brand in the South and Midwest to store operators.

In another newly unsealed statement, a Kroger executive acknowledged after the deal was announced that “Albertsons has made a lot of improvements in many of their stores” in markets that would be impacted by the merger, which regulators say illustrate how the two companies pit themselves against one another, which pushes the grocers to raise their quality and offerings to gain customers.

Other unredacted sections provide a better picture of the government’s case on how a merger would impact unionized stores. Federal regulators argued that Kroger and Albertsons have largely unionized workforces, enabling the unions to pit the competitors against one another to gain leverage during contract negotiations.

Another unredacted passage indicates that an Albertsons’ labor executive refers to Kroger “bargaining competitor” since the two companies “compete for sales and talent while engaging in bargaining with local unions at the same time.”

The Federal Trade Commission alleged that, in 2019, Kroger and Albertsons “successfully coordinated” in negotiations with Portland union workers that led to less favorable wages and working conditions for employees. It also allowed Kroger to “push through” a “reduction in healthcare reserve funding,” according to a newly unredacted passage.

The merger, federal regulators say, would serve to formalize those backchannel strategizing.

“The proposed acquisition is ‘a way out of it’ that would allow (Kroger and Albertsons) to have total alignment in future negotiations, to the detriment of union grocery workers,” federal regulators alleged.

United Food and Commercial Workers Local 555 — which represents the majority of workers at Albertsons, Safeway, Fred Meyer and QFC in Oregon and parts of Washington — endorsed the deal in January, saying that the deal would have a better outcome for workers than Albertsons’ sale to a different buyer.

But the union’s national umbrella and many other local chapters, as well as the Teamsters union that represents warehouse and transportation workers, have opposed the merger.

The newly unredacted complaint also shed more light on regulators’ concerns about Kroger and Albertsons’ divestiture plan. Last fall, the two companies promised to preserve competition under their merger deal by selling more than 400 stores to New Hampshire-based C&S for $1.9 billion. That sale would include at least 49 stores in Oregon.

The Federal Trade Commission argued that C&S lacks the experience in the food retail market and would “face multiple significant obstacles stitching together a viable business” that would make it a viable competitor.

Newly cleared sections suggest that C&S lacks experience running a grocery operation and that “even C&S admits, the proposed divestiture lacks the scale and necessary assets” that Kroger and Albertsons “rely on today to successfully operate their respective businesses.”

While the two supermarket giants and C&S have said that the merger won’t result in store closures, federal regulators alleged that “C&S admits that these commitments have no legally binding effect or duration, and C&S has reserved its right to close or sell supermarkets once the transition is completed.”

In newly uncensored sections, federal regulators cited internal company documents in which C&S contemplated selling the real estate it acquires in the deal, then leasing it back — recouping $1.5 billion of its purchase costs but potentially putting individual stores in a more vulnerable position, subject to the whims of a third-party landlord.

Lauren La Bruno, spokesperson for C&S Wholesale Grocers, said that the company “is deeply committed to our transformation strategy, which includes the expansion of our retail footprint.”

“C&S has an experienced management team with an extensive background in food retail and distribution and has the financial strength to continue investing in associates and the business,” La Bruno added. She also contends that the company has “a strong track record as a successful grocery retailer” that serves 7,500 independent supermarkets, retail chain stores and military bases.

But the Federal Trade Commission argues that C&S currently operates only 23 retail supermarkets — under the Piggly-Wiggly and Grand Union banners — and only one retail pharmacy. The rest of the stores are not operated by C&S, as the company acts as their supplier.

C&S acquired most of the stores it owns and operates in 2021 and 2022, regulators argued, making the company a “poor choice for a divestiture buyer” that would increase the likelihood that the divested stores would “flounder or fail.”

Kroger and Albertsons are two of Oregon’s biggest grocery chains, with more than 170 stores altogether under the Fred Meyer, QFC, Albertsons and Safeway brands. Kroger did not respond to inquiries on Tuesday, and Albertsons officials declined to comment on the lawsuit’s newly unredacted details.

More proof C&S isn't a real, committed buyer. Kroger and Albertsons lied about them. No real surprises there. Zero commitment to run the stores. Sell and lease back all the real estate then sell the stores to sucker operators (IGA type) for a dollar each, a service agreement contracting them to C&S for their wholesale needs, and watch them all fold quickly to clear the field for the new Kroger Goliath company.

C&S proven again has no intentions of being what the government wants when stores are divested, a committed party who wants to operate them to compete in the market. They are not a "agile new competitor" but rather a quick buck liquidator.

They are going to have to void the C&S deal if they want any chance of completing this merger. But if they do, then those stores they expected C&S will effectively liquidate for them could stand tall as real competitors which would reduce the increased sales and profits they would expect in their combined company. Between that and the vastly reduced store count I really don't see how it is "worth it" for Kroger to move forward with this deal.

The fact that they bring up they think the real estate could be sold for $1.5 billion, covering most of the $1.9 billion purchase price shows their thinking. Just because you are the wholesaler to hundreds of stores and only run 23 stores yourself is pretty damning as well.

So Kroger pays about $12 million per store, while C&S is paying $4.2 million per store.

If the C&S price per store is fixed which I assume it is and they hit the max of 650 then Kroger will now be paying almost $14 million per store. In urban California you probably couldn't build a store for $14M, but in cheaper markets with more basic construction (no seismic, basically block walls concrete floor etc) I'm guessing Kroger could build a new 50K store for the same price they're paying for old Albertsons properties.

So it's a really bad deal for Kroger if any of the sales in the C&S stores "stick" with them. They need each and every C&S store to close and it's sales return to a Kroger store for this to pan out. That means if they sold to any real competition who would keep them open (like Stater in SoCal, or Raley's/Save Mart in Norcal, AZ, NV, whoever in the PNW) and retain their business and effectively Kroger has paid $14M per store to just get whatever meager earnings that store generates which would most likely mean the added profit annually wouldn't offset the purchase cost with interest applied over time. They need the C&S locations to close and all their sales transfer over to a kept Kroger or Albertsons so that they can leverage the fixed overhead costs and increase their profits.

Based on the average cost value of inventory on the ACI balance sheet, each Albertsons store has about $2.2M of inventory. So C&S is only paying $2M per store if all those goods are liquidated at a profit.

They're paying $1.9B for $1.5B of Real Estate and $900M of inventory, and that doesn't include the other assets they'll receive like FF&E, Warehouses, Manufacturing Plants and so on.

If we just look at the basics of Real Estate and Store Inventory they're putting in $1.9B and getting $2.4B back, an immediate $500M windfall if they only liquidate the inventory at cost and don't spend much labor doing it.

Or a $500M profit after disposing of and closing every single store, and that's before whatever they make off selling leases, FF&E, plants etc. Probably another billion or two, which would mean paying $1.9B to recover the entire investment and double their money. They can flip the leased real estate into a bogus LLP or something that was designed to go bankrupt immediately so that not only is C&S unharmed but they cancel the leases for free and maximize their profits.

No wonder C&S won't commit to becoming the viable competitor Kroger claims they are... It's way too profitable to close all the stores they're buying! They're going to close every damn store they buy, with the only exception being anything they can sell to independent operators. And that's exactly what Kroger and Albertsons want them to do. They committed they won't close any stores themselves because they've effectively hired C&S to do it for them.

Total validation from just skimming through the balance sheet. The C&S deal was engineered to be worse than Haggen 2.0. Now I'm further convinced that if the Feds and States force the C&S deal to be canceled and order these stores to be sold to the highest bidder that will be the end of the merger. They'll call it off... They have to. They do not want what they promised, they absolutely do not want every store to stay open.

Right now I see zero difference, based on the Financials and the lack of commitment to stay open by C&S, between selling these stores to them or a liquidator like Hilco or Gordon Brothers or Great American. Of course if they said they were selling the divest stores to Hilco there would be Attorneys General screaming from the rooftops of state capitals everywhere, so instead they found a company that nobody's ever heard of (C&S) that performs all the same exact services. What a joke.

[marshd1000]

It is interesting looking at the divest list as it pertains to Washington State. I had made some predictions which came true, if the merger happens. One was that the Downtown Renton Safeway would be divested since it is across from a Fred Meyer. I was surprised that the small Safeway in the Renton Highlands didn’t go to C&S and become a QFC. I’m also surprised that the Safeway at Fairwood Shopping Center didn’t go to C&S as it is an easy drive from the Benson Plaza Fred Meyer. I notice that the Broadway Market QFC is being retained by Kroger. So I’m guessing that will become a Fred Meyer as it has an unusually heavy amount of general merchandise! Besides it was a non food Fred Meyer that was going to add food but then became QFC. But the University Village QFC is also being retained by Kroger. So could Kroger re-banner it as an extremely upscale Safeway? Or will it be an upscale Fred Meyer similar to the Fred Meyer on Burnside in Downtown Portland? That particular Fred Meyer is very upscale. As for Burien, it was a no brainer that the Burien Plaza Safeway would be divested as it is two blocks or so from the very busy Fred Meyer. But I wasn’t so sure that the Safeway at SW 128th Street would be retained. It looks like that will now be the Safeway for Burien! As for Bellingham, I’m surprised that the sole Safeway there will be divested to C&S. So I’m wondering if that will become Haggen or will it be QFC? I had wondered if QFC and Haggen would be aligned with their prices, ads, and selection? QFC stores like Downtown Bellevue and Kirkland Urban are more Haggen-like compared to some of the others. Will they become Haggen? Also will QFC become C&S’s mid range banner and Haggen the upscale one? So maybe that Bellingham Safeway will become QFC?

[Super S]

I will comment on the stores I am most familiar with:

Safeway — 2930 Ocean Beach Hwy, Longview:
I expected this due to the fact it is next to a Fred Meyer. However, the other Longview store did not make the list, neither did the Safeway in Kelso, which is actually undergoing a remodel right now.

Albertsons — 2108 W Main St, Battle Ground &
Safeway — 904 W Main St, Battle Ground:
Two stores a mile apart with a Fred Meyer in between. The Albertsons is the last remaining location with that name in Southwest Washington.

Safeway — 13023 NE Hwy 99 Ste 1, Vancouver &
Safeway — 14300 NE 20th Ave, Vancouver:
Two stores a mile apart with a Fred Meyer in between. 20th Ave. store was recently rebranded/remodeled from Albertsons.

Safeway — 705 Trosper Rd SW, Tumwater:
Rebranded/remodeled from Albertsons, across the street from Fred Meyer, newer Walmart nearby

QFC — 3505 SE 192nd Ave, Vancouver:
Nicer, newer QFC store not far from Fred Meyer at 164th & McGillvray. The QFC name has not been as successful in the Portland/Vancouver area.

Safeway — 6701 E Mill Plain Blvd, Vancouver:
Somewhat close to Fred Meyer at Grand Central off of Highway 14, but down a hill and not exactly in the neighborhood. There is a large Walmart at 104th Ave. & Mill Plain.

Safeway — 6711 NE 63rd St, Vancouver:
The two closest Fred Meyer locations are Hazel Dell or Orchards. There is a Costco just to the north on Andresen.

Safeway — 408 NE 81st St, Vancouver:
This is one of the older locations, and there is a Fred Meyer on the other side of Interstate 5. The nearest Walmart on Highway 99 is not a Supercenter.

Safeway — 2615 NE 112th Ave, Vancouver:
Located close to the Mill Plain Fred Meyer as well as Walmart at 104th Ave. & Mill Plain

Safeway — 6700 NE 162nd Ave Ste 500, Vancouver:
Seems just far enough away from Fred Meyer locations that this one could have been kept. There is a newer Walmart not far away on Fourth Plain.

Safeway — 3707 N Main St, Vancouver:
This is an older store. There is a Fred Meyer not far from here in Hazel Dell. The Main Street store primarily served the downtown area.

Safeway — 3250 Leif Erikson Dr, Astoria:
There is a Fred Meyer nearby in Warrenton, which also has Walmart and Costco. This Safeway is in a very visible location along Highway 30 and is the first major store when you come in to town from the east.

Safeway — 401 S Roosevelt Dr, Seaside:
Very busy tourist area in the summer months. The nearest Fred Meyer is in Warrenton, just far enough away that they might have been able to keep this one.

Safeway — 795 Lower Columbia River Hwy, Saint Helens:
An older store but with very good visibility along Highway 30. Shopping center has a vacant Rite Aid which was a former PayLess. Nearest Fred Meyer is in Scappoose, only other grocery store close by is a Grocery Outlet.

Safeway — 8255 S Wilsonville Rd, Wilsonville:
This is an interesting location as it was originally a Thriftway, and replaced a short-lived Albertsons (still vacant) on the other side of Interstate 5. There is a Fred Meyer close by.

Albertsons — 10500 Overland Rd, Boise:
This is a former Buttrey, with a Fred Meyer across the street.

Albertsons — 5100 W Overland Rd, Boise:
This is also a former Buttrey at the Hillcrest Shopping Center. Ironically, this replaced a very old Albertsons on Franklin, where there is now a Fred Meyer, which replaced a non-food Fred Meyer (former Grand Central, now demolished) at Hillcrest.

Albertsons — 909 E Parkcenter Blvd, Boise: Very close to Albertsons Headquarters. Albertsons also owns the adjacent former Kmart building.

Albertsons — 3614 W State St, Boise: In between the original Albertsons location at 16th & State, and another location further west at Gary Lane.

Albertsons — 20 E Fairview Ave, Meridian: former Paul's location acquired by Albertsons in the 1980s.

A few observations: There are some Albertsons locations not on this list, including the flagship Albertsons stores at 16th & State (on the original Albertsons site) in Boise, Broadway in Boise, and the huge store in Meridian in the old Shopko, and a few other scattered locations. Also a handful of Safeway stores in Washington and Oregon: Vancouver at 136th & Mill Plain (once on a closure list, now rumored to become a car dealership), Clatskanie, Oregon (An old Marina store which lacks a bakery, deli, and pharmacy, but is really the only supermarket in town), Woodland, Washington (visible from I-5), as well as the previously mentioned Safeway locations in Kelso, WA (former TOP foods, undergoing a remodel) and Longview, WA on 15th Ave. (close to a WinCo)

I am kinda curious what will happen with the stores not on the list...will these be rebranded as Kroger, Fred Meyer, or something else?

[bryceleinan]

I will comment on the stores I am most familiar with:

Safeway — 2930 Ocean Beach Hwy, Longview:
I expected this due to the fact it is next to a Fred Meyer. However, the other Longview store did not make the list, neither did the Safeway in Kelso, which is actually undergoing a remodel right now.

Albertsons — 2108 W Main St, Battle Ground &
Safeway — 904 W Main St, Battle Ground:
Two stores a mile apart with a Fred Meyer in between. The Albertsons is the last remaining location with that name in Southwest Washington.

Safeway — 13023 NE Hwy 99 Ste 1, Vancouver &
Safeway — 14300 NE 20th Ave, Vancouver:
Two stores a mile apart with a Fred Meyer in between. 20th Ave. store was recently rebranded/remodeled from Albertsons.

Safeway — 705 Trosper Rd SW, Tumwater:
Rebranded/remodeled from Albertsons, across the street from Fred Meyer, newer Walmart nearby

QFC — 3505 SE 192nd Ave, Vancouver:
Nicer, newer QFC store not far from Fred Meyer at 164th & McGillvray. The QFC name has not been as successful in the Portland/Vancouver area.

Safeway — 6701 E Mill Plain Blvd, Vancouver:
Somewhat close to Fred Meyer at Grand Central off of Highway 14, but down a hill and not exactly in the neighborhood. There is a large Walmart at 104th Ave. & Mill Plain.

Safeway — 6711 NE 63rd St, Vancouver:
The two closest Fred Meyer locations are Hazel Dell or Orchards. There is a Costco just to the north on Andresen.

Safeway — 408 NE 81st St, Vancouver:
This is one of the older locations, and there is a Fred Meyer on the other side of Interstate 5. The nearest Walmart on Highway 99 is not a Supercenter.

Safeway — 2615 NE 112th Ave, Vancouver:
Located close to the Mill Plain Fred Meyer as well as Walmart at 104th Ave. & Mill Plain

Safeway — 6700 NE 162nd Ave Ste 500, Vancouver:
Seems just far enough away from Fred Meyer locations that this one could have been kept. There is a newer Walmart not far away on Fourth Plain.

Safeway — 3707 N Main St, Vancouver:
This is an older store. There is a Fred Meyer not far from here in Hazel Dell. The Main Street store primarily served the downtown area.

Safeway — 3250 Leif Erikson Dr, Astoria:
There is a Fred Meyer nearby in Warrenton, which also has Walmart and Costco. This Safeway is in a very visible location along Highway 30 and is the first major store when you come in to town from the east.

Safeway — 401 S Roosevelt Dr, Seaside:
Very busy tourist area in the summer months. The nearest Fred Meyer is in Warrenton, just far enough away that they might have been able to keep this one.

Safeway — 795 Lower Columbia River Hwy, Saint Helens:
An older store but with very good visibility along Highway 30. Shopping center has a vacant Rite Aid which was a former PayLess. Nearest Fred Meyer is in Scappoose, only other grocery store close by is a Grocery Outlet.

Safeway — 8255 S Wilsonville Rd, Wilsonville:
This is an interesting location as it was originally a Thriftway, and replaced a short-lived Albertsons (still vacant) on the other side of Interstate 5. There is a Fred Meyer close by.

Albertsons — 10500 Overland Rd, Boise:
This is a former Buttrey, with a Fred Meyer across the street.

Albertsons — 5100 W Overland Rd, Boise:
This is also a former Buttrey at the Hillcrest Shopping Center. Ironically, this replaced a very old Albertsons on Franklin, where there is now a Fred Meyer, which replaced a non-food Fred Meyer (former Grand Central, now demolished) at Hillcrest.

Albertsons — 909 E Parkcenter Blvd, Boise: Very close to Albertsons Headquarters. Albertsons also owns the adjacent former Kmart building.

Albertsons — 3614 W State St, Boise: In between the original Albertsons location at 16th & State, and another location further west at Gary Lane.

Albertsons — 20 E Fairview Ave, Meridian: former Paul's location acquired by Albertsons in the 1980s.

A few observations: There are some Albertsons locations not on this list, including the flagship Albertsons stores at 16th & State (on the original Albertsons site) in Boise, Broadway in Boise, and the huge store in Meridian in the old Shopko, and a few other scattered locations. Also a handful of Safeway stores in Washington and Oregon: Vancouver at 136th & Mill Plain (once on a closure list, now rumored to become a car dealership), Clatskanie, Oregon (An old Marina store which lacks a bakery, deli, and pharmacy, but is really the only supermarket in town), Woodland, Washington (visible from I-5), as well as the previously mentioned Safeway locations in Kelso, WA (former TOP foods, undergoing a remodel) and Longview, WA on 15th Ave. (close to a WinCo)

I am kinda curious what will happen with the stores not on the list...will these be rebranded as Kroger, Fred Meyer, or something else?

I can add to this list a bit:

Florence (Safeway) - Fred Meyer is across town, McKay’s out of Coos Bay is the other grocery store in town.

Coos Bay (Safeway) - next to Fred Meyer and Edgewater Inn. Fred Meyer would have been better off closing their food section and moving into Safeway.

Newberg (Safeway) - Fred Meyer directly across Hwy 99, only other grocery stores in town are Grocery Outlet and a small Thriftway.

Elko, NV (Albertsons) - Smith’s is one exit down I-80, other grocery stores are Raley’s, Walmart, and Roy’s.

Newport, OR (Safeway) - back wall is the Fred Meyer driveway.

Tillamook (Safeway): Fred Meyer not that far away.

Sherwood (Safeway) - I’m guessing the Fred Meyer stores in Newberg and Tualatin are the main competition?

[ClownLoach]

I will comment on the stores I am most familiar with:

Safeway — 2930 Ocean Beach Hwy, Longview:
I expected this due to the fact it is next to a Fred Meyer. However, the other Longview store did not make the list, neither did the Safeway in Kelso, which is actually undergoing a remodel right now.

Albertsons — 2108 W Main St, Battle Ground &
Safeway — 904 W Main St, Battle Ground:
Two stores a mile apart with a Fred Meyer in between. The Albertsons is the last remaining location with that name in Southwest Washington.

Safeway — 13023 NE Hwy 99 Ste 1, Vancouver &
Safeway — 14300 NE 20th Ave, Vancouver:
Two stores a mile apart with a Fred Meyer in between. 20th Ave. store was recently rebranded/remodeled from Albertsons.

Safeway — 705 Trosper Rd SW, Tumwater:
Rebranded/remodeled from Albertsons, across the street from Fred Meyer, newer Walmart nearby

QFC — 3505 SE 192nd Ave, Vancouver:
Nicer, newer QFC store not far from Fred Meyer at 164th & McGillvray. The QFC name has not been as successful in the Portland/Vancouver area.

Safeway — 6701 E Mill Plain Blvd, Vancouver:
Somewhat close to Fred Meyer at Grand Central off of Highway 14, but down a hill and not exactly in the neighborhood. There is a large Walmart at 104th Ave. & Mill Plain.

Safeway — 6711 NE 63rd St, Vancouver:
The two closest Fred Meyer locations are Hazel Dell or Orchards. There is a Costco just to the north on Andresen.

Safeway — 408 NE 81st St, Vancouver:
This is one of the older locations, and there is a Fred Meyer on the other side of Interstate 5. The nearest Walmart on Highway 99 is not a Supercenter.

Safeway — 2615 NE 112th Ave, Vancouver:
Located close to the Mill Plain Fred Meyer as well as Walmart at 104th Ave. & Mill Plain

Safeway — 6700 NE 162nd Ave Ste 500, Vancouver:
Seems just far enough away from Fred Meyer locations that this one could have been kept. There is a newer Walmart not far away on Fourth Plain.

Safeway — 3707 N Main St, Vancouver:
This is an older store. There is a Fred Meyer not far from here in Hazel Dell. The Main Street store primarily served the downtown area.

Safeway — 3250 Leif Erikson Dr, Astoria:
There is a Fred Meyer nearby in Warrenton, which also has Walmart and Costco. This Safeway is in a very visible location along Highway 30 and is the first major store when you come in to town from the east.

Safeway — 401 S Roosevelt Dr, Seaside:
Very busy tourist area in the summer months. The nearest Fred Meyer is in Warrenton, just far enough away that they might have been able to keep this one.

Safeway — 795 Lower Columbia River Hwy, Saint Helens:
An older store but with very good visibility along Highway 30. Shopping center has a vacant Rite Aid which was a former PayLess. Nearest Fred Meyer is in Scappoose, only other grocery store close by is a Grocery Outlet.

Safeway — 8255 S Wilsonville Rd, Wilsonville:
This is an interesting location as it was originally a Thriftway, and replaced a short-lived Albertsons (still vacant) on the other side of Interstate 5. There is a Fred Meyer close by.

Albertsons — 10500 Overland Rd, Boise:
This is a former Buttrey, with a Fred Meyer across the street.

Albertsons — 5100 W Overland Rd, Boise:
This is also a former Buttrey at the Hillcrest Shopping Center. Ironically, this replaced a very old Albertsons on Franklin, where there is now a Fred Meyer, which replaced a non-food Fred Meyer (former Grand Central, now demolished) at Hillcrest.

Albertsons — 909 E Parkcenter Blvd, Boise: Very close to Albertsons Headquarters. Albertsons also owns the adjacent former Kmart building.

Albertsons — 3614 W State St, Boise: In between the original Albertsons location at 16th & State, and another location further west at Gary Lane.

Albertsons — 20 E Fairview Ave, Meridian: former Paul's location acquired by Albertsons in the 1980s.

A few observations: There are some Albertsons locations not on this list, including the flagship Albertsons stores at 16th & State (on the original Albertsons site) in Boise, Broadway in Boise, and the huge store in Meridian in the old Shopko, and a few other scattered locations. Also a handful of Safeway stores in Washington and Oregon: Vancouver at 136th & Mill Plain (once on a closure list, now rumored to become a car dealership), Clatskanie, Oregon (An old Marina store which lacks a bakery, deli, and pharmacy, but is really the only supermarket in town), Woodland, Washington (visible from I-5), as well as the previously mentioned Safeway locations in Kelso, WA (former TOP foods, undergoing a remodel) and Longview, WA on 15th Ave. (close to a WinCo)

I am kinda curious what will happen with the stores not on the list...will these be rebranded as Kroger, Fred Meyer, or something else?

I can add to this list a bit:

Florence (Safeway) - Fred Meyer is across town, McKay’s out of Coos Bay is the other grocery store in town.

Coos Bay (Safeway) - next to Fred Meyer and Edgewater Inn. Fred Meyer would have been better off closing their food section and moving into Safeway.

Newberg (Safeway) - Fred Meyer directly across Hwy 99, only other grocery stores in town are Grocery Outlet and a small Thriftway.

Elko, NV (Albertsons) - Smith’s is one exit down I-80, other grocery stores are Raley’s, Walmart, and Roy’s.

Newport, OR (Safeway) - back wall is the Fred Meyer driveway.

Tillamook (Safeway): Fred Meyer not that far away.

Sherwood (Safeway) - I’m guessing the Fred Meyer stores in Newberg and Tualatin are the main competition?

That Astoria Safeway is one of my favorite grocery stores on the planet. Not because of the store.

The location is absolutely stunningly beautiful. Feet from the water, and all those old decaying dock pilings in the water.

I always stop there to go take pictures whenever I'm up there, walk along the old train tracks, watch the sea birds, and just admire the beauty of that site. Whenever I think of Safeway that store is the first one that comes to mind.

[storewanderer]

It is interesting looking at the divest list as it pertains to Washington State. I had made some predictions which came true, if the merger happens. One was that the Downtown Renton Safeway would be divested since it is across from a Fred Meyer. I was surprised that the small Safeway in the Renton Highlands didn’t go to C&S and become a QFC. I’m also surprised that the Safeway at Fairwood Shopping Center didn’t go to C&S as it is an easy drive from the Benson Plaza Fred Meyer. I notice that the Broadway Market QFC is being retained by Kroger. So I’m guessing that will become a Fred Meyer as it has an unusually heavy amount of general merchandise! Besides it was a non food Fred Meyer that was going to add food but then became QFC. But the University Village QFC is also being retained by Kroger. So could Kroger re-banner it as an extremely upscale Safeway? Or will it be an upscale Fred Meyer similar to the Fred Meyer on Burnside in Downtown Portland? That particular Fred Meyer is very upscale. As for Burien, it was a no brainer that the Burien Plaza Safeway would be divested as it is two blocks or so from the very busy Fred Meyer. But I wasn’t so sure that the Safeway at SW 128th Street would be retained. It looks like that will now be the Safeway for Burien! As for Bellingham, I’m surprised that the sole Safeway there will be divested to C&S. So I’m wondering if that will become Haggen or will it be QFC? I had wondered if QFC and Haggen would be aligned with their prices, ads, and selection? QFC stores like Downtown Bellevue and Kirkland Urban are more Haggen-like compared to some of the others. Will they become Haggen? Also will QFC become C&S’s mid range banner and Haggen the upscale one? So maybe that Bellingham Safeway will become QFC?

Broadway Market QFC is on the divest list. It is 417 Broadway?

I find it funny both Mercer Island QFCs get divested. No other Safeway or Kroger units there.

Stanwood is also interesting - QFC gets divested but Haggen gets retained.

Only 3 Haggens are retained by Kroger: Stanwood, Lake Stevens (divesting a Safeway there), Mount Vernon (divesting a Safeway there). I feel like it would be easier logistically to just divest ALL 15 Haggen units...

So what QFCs are being retained? It appears like 4 or 5 QFCs are retained by Kroger:
University Village
?
?

[marshd1000]

It is interesting looking at the divest list as it pertains to Washington State. I had made some predictions which came true, if the merger happens. One was that the Downtown Renton Safeway would be divested since it is across from a Fred Meyer. I was surprised that the small Safeway in the Renton Highlands didn’t go to C&S and become a QFC. I’m also surprised that the Safeway at Fairwood Shopping Center didn’t go to C&S as it is an easy drive from the Benson Plaza Fred Meyer. I notice that the Broadway Market QFC is being retained by Kroger. So I’m guessing that will become a Fred Meyer as it has an unusually heavy amount of general merchandise! Besides it was a non food Fred Meyer that was going to add food but then became QFC. But the University Village QFC is also being retained by Kroger. So could Kroger re-banner it as an extremely upscale Safeway? Or will it be an upscale Fred Meyer similar to the Fred Meyer on Burnside in Downtown Portland? That particular Fred Meyer is very upscale. As for Burien, it was a no brainer that the Burien Plaza Safeway would be divested as it is two blocks or so from the very busy Fred Meyer. But I wasn’t so sure that the Safeway at SW 128th Street would be retained. It looks like that will now be the Safeway for Burien! As for Bellingham, I’m surprised that the sole Safeway there will be divested to C&S. So I’m wondering if that will become Haggen or will it be QFC? I had wondered if QFC and Haggen would be aligned with their prices, ads, and selection? QFC stores like Downtown Bellevue and Kirkland Urban are more Haggen-like compared to some of the others. Will they become Haggen? Also will QFC become C&S’s mid range banner and Haggen the upscale one? So maybe that Bellingham Safeway will become QFC?

Broadway Market QFC is on the divest list. It is 417 Broadway?

I find it funny both Mercer Island QFCs get divested. No other Safeway or Kroger units there.

Stanwood is also interesting - QFC gets divested but Haggen gets retained.

Only 3 Haggens are retained by Kroger: Stanwood, Lake Stevens (divesting a Safeway there), Mount Vernon (divesting a Safeway there). I feel like it would be easier logistically to just divest ALL 15 Haggen units...

So what QFCs are being retained? It appears like 4 or 5 QFCs are retained by Kroger:
University Village
?
?

The Broadway Market QFC is being retained. The location at 1401 Broadway, the Harvard Market store is being divested! Since C&S will own the QFC banner, any store that is divested by Kroger/Albertsons, will become one of their retained banners. So most likely the Broadway Market store will become a Fred Meyer once again. But other QFC’s that Kroger retains could also become Safeway stores….it just depends!

The