Kroger and Albertsons sell over 400 Stores for merger approval, Mariano's brand affected

Kroger and Albertsons have agreed to sell more than 400 stores and related assets for approximately $1.9 billion as they seek approval for their merger from antitrust regulators, according to the Chicago Sun Times. This decision will have a direct impact on the Mariano's brand in the Chicago area. 

The 400 stores, along with QFC, Mariano’s and Carrs brand names, are being sold to C&S Wholesale Grocers. The divestiture plan arrives as Kroger and Albertsons, the two largest traditional grocery operators in the United States, attempt to secure Federal Trade Commission (FTC) approval for their $24.6 billion merger, as reported by the Chicago Tribune. It remains uncertain how many Mariano’s stores will be sold, but 14 of Kroger's Illinois locations are subject to divestiture. 

In a statement, Amanda Puck, director of strategic brand development for Mariano’s, stated, “Because we are still in the regulatory process, we are not able to share the specific locations included in the agreement.” 

If the merger is approved, the remaining Mariano’s stores under Kroger's ownership might be rebranded with existing Kroger or Albertsons brands. Jon Hauptman, founder and president of retail consultancy Price Dimensions, told the Chicago Tribune that Kroger may operate the retained Mariano's stores under the Jewel-Osco banner.

This merger between Kroger and Albertsons aims to enhance their competitive position in the market, where they must face rivals such as Walmart, Amazon and a host of other major companies that have entered the grocery business. The deal to divest the stores to C&S Wholesale Grocers, which is still subject to FTC approval, is on track to close in early 2024. Kroger may also require C&S to purchase an additional 237 stores in specific regions to secure FTC approval for their merger.

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