Kroger, the leading grocery giant, has made a firm commitment to expand its range of local products after its merger with Albertsons. With this move, the combined company plans to increase the availability of local products in its stores by a significant 10%. This means that customers can expect to find at least 30 new local products in each Kroger store, post-merger.
The Kroger-Albertsons merger, valued at approximately $20 billion, has garnered attention and criticism from various quarters. In response to concerns raised by politicians and workers, the U.S. Federal Trade Commission has initiated an inquiry seeking additional information about the planned merger.
Addressing regulatory concerns, Kroger and Albertsons recently struck a deal with C&S Wholesale Grocers to sell 413 stores for $1.9 billion. This strategic divestiture aims to help secure regulatory approval for the merger. The stores involved in the deal span across 17 states and the District of Columbia and include distribution centers and private-label brands. The completion of this divestiture is contingent upon the outcome of the ongoing regulatory review conducted by the FTC. Should the need arise, Kroger may require C&S to purchase additional stores to ensure regulatory clearance. The combined Kroger-Albertsons entity had previously agreed to sell up to 650 stores as part of their deal.