Kroger, Albertsons to merge in $24.6B deal

[Stevicus]

Kroger, Albertsons to merge in $24.6B deal | Fox Business

Grocery chain Kroger will buy rival Albertsons in a deal valued at $24.6 billion, the companies announced on Friday.

"This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors," Kroger CEO Rodney McMullen, who will continue to lead the combined company, said in a statement.

McMullen said the companies believe the move will lead to "faster and more profitable growth and generate greater returns for our shareholders."

The deal still requires regulatory approval.

Together the companies employ over 710,000 people and operate nearly 5,000 stores across 48 states and the District of Columbia.

"Given the similarities in the culture and values at Kroger and Albertsons Cos., I am confident that the combination will also have a positive impact on our associates and the communities we are proud to serve," Albertsons CEO Vivek Sankaran said in a statement.

The deal will up the ante in the food shopping space challenging rivals including Amazon-owned Whole Foods as well as Walmart, Target and Costco.

Under the terms of the agreement, Kroger is acquiring Albertsons for $34.10 per share and also assuming approximately $4.7 billion of Albertson's net debt.

Kroger said the agreement accelerates its "go-to market strategy" and that it plans to invest in lowering prices going forward, reinvesting around half a billion dollars of cost savings to do so.

In addition, an incremental $1.3 billion will also be invested into Albertsons stores to enhance the customer experience.

Kroger will also build on its recent investments in associate wages, training and benefits, expecting to invest $1 billion to continue that effort.

$1.3 billion to "enhance the customer experience"? We have both Kroger's and Albertson's here, so it should be interesting to see how enhancing it is.

Albertsons is also prepared to establish a subsidiary, SpinCo, that would be spun-off to Albertsons shareholders immediately before merger closing and operate as a standalone public company.

Kroger operates under numerous different names in different states. In my state, they're called "Fry's," but all the store-branded products say "Kroger."


The Kroger Co. operates grocery retail stores under the following banners:

• Supermarkets – Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick ‘n Save, Metro Market, Mariano’s
• Multi-department stores – Fred Meyer
• Dillons Marketplace, Fry’s Marketplace, King Soopers Marketplace, Kroger Marketplace, Smith’s Marketplace
• Price-impact warehouse stores – Food 4 Less, Foods Co

Grocery Retail - The Kroger Co.

As for Albertson's, they also operate under various names, as the second-largest chain behind Kroger: Albertsons | Supermarket News

Although the first Albertsons grocery store was opened by Joe Albertson in Boise, Idaho, in 1939, many of the banners now under the Albertsons umbrella have even longer histories — Acme in 1891, Jewel in 1899, Safeway in 1914 and United in 1916. Today, Albertsons operates 2,277 retail stores in 34 states and the District of Columbia under such banners as Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market. It is the second-largest supermarket chain in the United States by sales and store count, following The Kroger Co.

...

We used to have a more competitive selection of supermarkets once upon a time, but now it looks like we're down to a choice between Kroger and Walmart.

 

[Saint Frankenstein]

Kroger is an evil company that treats its workers like garbage and pays us poverty wages, and the union is extremely corrupt, working against its members.

 

[Twilight Hue]

Kroger, Albertsons to merge in $24.6B deal | Fox Business















$1.3 billion to "enhance the customer experience"? We have both Kroger's and Albertson's here, so it should be interesting to see how enhancing it is.



Kroger operates under numerous different names in different states. In my state, they're called "Fry's," but all the store-branded products say "Kroger."


The Kroger Co. operates grocery retail stores under the following banners:

• 
  
  
  • Supermarkets – Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick ‘n Save, Metro Market, Mariano’s
  • Multi-department stores – Fred Meyer
  • Dillons Marketplace, Fry’s Marketplace, King Soopers Marketplace, Kroger Marketplace, Smith’s Marketplace
  • Price-impact warehouse stores – Food 4 Less, Foods Co

Grocery Retail - The Kroger Co.

As for Albertson's, they also operate under various names, as the second-largest chain behind Kroger: Albertsons | Supermarket News

Although the first Albertsons grocery store was opened by Joe Albertson in Boise, Idaho, in 1939, many of the banners now under the Albertsons umbrella have even longer histories — Acme in 1891, Jewel in 1899, Safeway in 1914 and United in 1916. Today, Albertsons operates 2,277 retail stores in 34 states and the District of Columbia under such banners as Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market. It is the second-largest supermarket chain in the United States by sales and store count, following The Kroger Co.

...

We used to have a more competitive selection of supermarkets once upon a time, but now it looks like we're down to a choice between Kroger and Walmart.

That's the whole scheme. Monopolies through the few and wipe out the rest. Price gouging and slave wages along with poor conditions to follow as there is little or no competition anymore.

 

[Stevicus]

That's the whole scheme. Monopolies through the few and wipe out the rest. Price gouging and slave wages along with poor conditions to follow as there is little or no competition anymore.

The day they merge with Walmart will be a sure sign that we've reached the end.

 

[Shadow Wolf]

Foodsco is what they have here. Regardless, I've always thought Kroger was a lame place to shop, especially with high prices and a crap store brand.

 

[Stevicus]

Foodsco is what they have here. Regardless, I've always thought Kroger was a lame place to shop, especially with high prices and a crap store brand.

They also have Ralph's in California. They're insidious.

And having to choose between Kroger and Walmart is worse than having to choose between the Democrats and the Republicans.

 

[Shadow Wolf]

They also have Ralph's in California. They're insidious.

And having to choose between Kroger and Walmart is worse than having to choose between the Democrats and the Republicans.

I like Winco.

 

[Brickjectivity]

Here we have three stores other than walmart including an established independent store. 1/2 hour from here there is a Kroger and an Aldi's. We do not have a Trader Joe's or Piggly Wiggly or Food Lion.

 

[Sedim Haba]

We used to have a more competitive selection of supermarkets once upon a time, but now it looks like we're down to a choice between Kroger and Walmart.

Don't forget Dollar Tree / Dollar General.
In urban 'food deserts' that may be the only local source of food. No fresh veggies there.
Food insecurity and tainted water is the future.

 

[pearl]

We used to have a more competitive selection of supermarkets once upon a time, but now it looks like we're down to a choice between Kroger and Walmart.

I think there is only one market with which I am familiar, Shaw markets that is part of the deal. We have many other choices in markets outside of Walmart and Kroger. I know nothing of Kroger and never shop Walmart for food.

 

[Jayhawker Soule]

For those of us in the Chicago area it means the merger of Jewel-Osco and Mariano's. Count me no thappy.

 

[Sedim Haba]

For those of us in the Chicago area it means the merger of Jewel-Osco and Mariano's. Count me no thappy.

Don't you have Woodman's moving into the area now?

 

[Jayhawker Soule]

Don't you have Woodman's moving into the area now?

There is one in a northern suburb.

 

[Watchmen]

Anyone still doing their regular grocery shopping at one of these mega chains is a fool. They are over priced. Go down the street and get the same or essentially the same items for much less.

 

[Stevicus]

Anyone still doing their regular grocery shopping at one of these mega chains is a fool. They are over priced. Go down the street and get the same or essentially the same items for much less.

What street?

 

[Sand Dancer]

Kroger, Albertsons to merge in $24.6B deal | Fox Business















$1.3 billion to "enhance the customer experience"? We have both Kroger's and Albertson's here, so it should be interesting to see how enhancing it is.



Kroger operates under numerous different names in different states. In my state, they're called "Fry's," but all the store-branded products say "Kroger."


The Kroger Co. operates grocery retail stores under the following banners:

• 
  
  
  • Supermarkets – Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick ‘n Save, Metro Market, Mariano’s
  • Multi-department stores – Fred Meyer
  • Dillons Marketplace, Fry’s Marketplace, King Soopers Marketplace, Kroger Marketplace, Smith’s Marketplace
  • Price-impact warehouse stores – Food 4 Less, Foods Co

Grocery Retail - The Kroger Co.

As for Albertson's, they also operate under various names, as the second-largest chain behind Kroger: Albertsons | Supermarket News

Although the first Albertsons grocery store was opened by Joe Albertson in Boise, Idaho, in 1939, many of the banners now under the Albertsons umbrella have even longer histories — Acme in 1891, Jewel in 1899, Safeway in 1914 and United in 1916. Today, Albertsons operates 2,277 retail stores in 34 states and the District of Columbia under such banners as Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market. It is the second-largest supermarket chain in the United States by sales and store count, following The Kroger Co.

...

We used to have a more competitive selection of supermarkets once upon a time, but now it looks like we're down to a choice between Kroger and Walmart.

Good. I am all for more competition for Publix.

 

[ADigitalArtist]

Anyone still doing their regular grocery shopping at one of these mega chains is a fool. They are over priced. Go down the street and get the same or essentially the same items for much less.

Within a ten mile radius of me there's no independently owned grocer. There's two Walmart owned, two Kroger owned, and one Amazon owned. Not everyone has the same access you do.

 

[Stevicus]

Good. I am all for more competition for Publix.

We don't have any of those in my area. We don't have any Piggly Wiggly stores either.

I remember there used to be more competition among grocery stores around here, or at least, more small chains and independent stores to choose from.

Walmart has changed the landscape somewhat, while Kroger and Amazon appear to be forming up as rival titans. The smaller, mom-and-pop stores I remember when I was younger just can't compete.

They haven't completely vanished, as there are a few which have had a loyal customer base which allows them to survive, but it's clearly an uphill battle.

 

[Sand Dancer]

We don't have any of those in my area. We don't have any Piggly Wiggly stores either.

I remember there used to be more competition among grocery stores around here, or at least, more small chains and independent stores to choose from.

Walmart has changed the landscape somewhat, while Kroger and Amazon appear to be forming up as rival titans. The smaller, mom-and-pop stores I remember when I was younger just can't compete.

They haven't completely vanished, as there are a few which have had a loyal customer base which allows them to survive, but it's clearly an uphill battle.

It's sad that the smaller stores are going by the wayside.

 

[Watchmen]

Within a ten mile radius of me there's no independently owned grocer. There's two Walmart owned, two Kroger owned, and one Amazon owned. Not everyone has the same access you do.

What if you go 11 miles?