With several television and print outlets covering the story, the ongoing saga of the
proposed Kroger and Albertson’s merger is in the news again. This time the news spreading quickly features the list of the 579 stores to be sold to a third party if the merger is successful. Economic Development Manager Maggie Holmberg reached out quickly with context to allay concerns and address rumors about our local Safeway store closing.
Holmberg said the merger with Safeway/Albertson’s and Kroger was announced nearly two years ago and the Federal Trade Commission is suing to stop it, calling the proposed merger “anticompetitive” (monopoly) and bad for shoppers and employees alike . The FTC lawsuit points out that the merger would eliminate fierce competition, pushing up prices on groceries and other essential household items, reducing quality of food and services, possible effect on pay and benefits for current and potential employees, and fewer choices for where to shop. “At this time, the lawsuit is ongoing,” Holmberg stated, “With the Federal Trade Commission suing to stop it, I don’t see a successful end in sight for the merger.”
The 579 stores listed to have changes (not closures), due to the merger, will only happen if federal regulations allow it. The announcement of which stores would be sold to C&S Wholesale Grocers does not mean that the merger is going to happen. It is only an announcement of a new plan to try to move the merger forward and to try and address the monopoly issue. Whether the Federal Trade Commission will accept this new plan remains to be seen.
If the merger does occur according to the proposed plan and C&S Wholesale purchases the Chino Valley Safeway store, they retain the rights to use the Safeway brand name in Arizona and Colorado, as well as the Albertsons name in California and Wyoming. “As an expert in my field”, Holmberg stated, “I doubt that the name would change from Safeway.” In addition, according to Kroger and Albertson’s/Safeway, C&S has stated that no stores will close as a result of the merger and that all frontline associates will remain employed.
“Our local Safeway store is an important part of community and our lives,” Town Manager Cindy Blackmore stated, “Rumors of its closing are understandably disconcerting.” She urges everyone to always fact check any information they see or hear and feel confident that, as our Economic Development advocate, Maggie will stay connected with her industry contacts and provide new information on the merger as it becomes available.