Kroger to sell 26 grocery stores in Texas if merger with Albertsons moves forward

Nearly 30 Texas grocery stores will be sold if a Kroger and Albertsons merger is approved.

The grocery giants announced plans in October for Kroger to acquire Albertsons for $24.6 billion. The proposal was initially met with some public opposition and is still pending approval from federal regulators. The combined company could generate $209 billion in annual revenue.

With a total of 5,000 stores, a Kroger-Albertsons merger would position the chain competitively against the country’s largest grocers, Walmart, Amazon and Costco. Kroger and Albertsons each operate a family of other grocery banners, including Tom Thumb, Ralphs, Harris Teeter, Fred Meyer, King Soopers, Safeway and Vons.

Kroger said Friday the merger should be finalized by early 2024. If and when the deal goes through, New Hampshire-based C&S Wholesale Grocers would purchase 413 grocery stores, including 26 locations in Texas, for $1.9 billion.

“We understand the plan will impact Texas but does not include the sale of any Dallas Kroger stores at this time,” Kroger spokesperson John Votava said. “Because we are still in the regulatory process, we are not able to share the specific locations included in the agreement.”

None of the 26 Texas stores sold to C&S would be of the Kroger brand, Votava said.

Founded more than 100 years ago, C&S is a grocery supplier to more than 7,500 independent supermarkets and chain stores, according to its website. The wholesaler has more than 100,000 products.

“C&S agreed to honor all collective bargaining agreements, securing the future of good-paying union jobs and protecting associates’ industry-leading health care and pension benefits as well as bargained-for wages,” Votava said.

Kroger’s agreement with C&S also includes the sale of five private-label brands, eight distribution centers and two offices across Washington D.C. and 17 states, the company said.

Store brand names to be sold include QFC, Mariano’s and Carrs. Private-label product brands to be sold include Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals and Waterfront Bistro.

Rodney McMullen, chairman and CEO of Kroger, said C&S is positioned to successfully operate these brands.

“Following the announcement of our proposed merger with Albertsons Cos., we embarked on a robust and thoughtful process to identify a well-capitalized buyer who will operate as a fierce competitor and ensure divested stores and their associates will continue serving their communities in the ways they do today,” McMullen said in a release. “C&S achieves all these objectives.”

Ohio-based Kroger has 218 stores in Texas, clustered in the Metroplex and the Houston metro. Kroger employs more than 30,000 workers in the state.

Idaho-based Albertsons has 43 stores in Texas, as well as 65 Tom Thumbs.