Revised divestiture agreement in Kroger/Albertsons merger includes 91 stores in Colorado

In a significant development, Kroger has announced a revised divestiture agreement in its merger with Albertsons, now including 91 stores in Colorado. Under this new agreement, C&S Wholesale Grocers will acquire a total of 579 stores, up from the previously planned 413. C&S will gain licensing rights to the Safeway banner in Colorado and Arizona, and the Albertsons banner in California and Wyoming.

This revised transaction, which includes 40% more stores and additional distribution capacity, positions C&S as a formidable competitor in the grocery retail market. This expansion aligns with C&S’s strategy to become a leading U.S. grocery retailer, enhancing its capacity to serve thousands of grocery stores nationwide.

C&S, with over $20 billion in revenue and a vast wholesale operation supplying more than 7,500 stores, is poised to leverage this acquisition to bolster its retail presence. Despite some skepticism from politicians and industry observers about C&S’s ability to manage these stores effectively, the company’s track record and strong financial foundation suggest otherwise. Notably, C&S has committed to maintaining all acquired stores and preserving front-line jobs, highlighting its pro-union stance and long-term investment in the grocery sector.

This strategic move is expected to significantly enhance C&S’s competitive edge, particularly in Colorado, where the addition of 91 stores will have a substantial impact on the local market.

With this acquisition, C&S will become the 8th largest U.S. grocer by sales, further solidifying its position in the industry. The company’s extensive experience, deep management team, and substantial capital resources underscore its capability to integrate these new assets and drive growth. This expansion promises to benefit consumers through improved service, better prices, and a stronger grocery retail landscape in Colorado and beyond.