Kroger's Strategic Market Moves in Arizona

Big Grocery Chains Making Moves in Arizona

Kroger , the parent company of Fry 's Food Stores and other supermarkets , is in the process of selling more than 100 Arizona - based supermarkets in order to proceed with its acquisition of Albertsons Cos . This acquisition is valued at 4.6 billion . The 101 Arizona supermarkets in question , all Safeway and Albertsons locations , are set to be sold to C&S Wholesale Grocers , a company that has minimal regional ties.

The plan to divest 101 stores in Arizona is second in number only to Washington state , with Colorado following in third place with 91 stores . Regulators , including the Federal Trade Commission and Arizona Attorney General Kris Mayes , are working to block the sale , noting that it could lead to a significant share of the grocery market being controlled by one entity.

Store Transfers and Distribution Centers

The store transfers in Arizona include 20 Safeway or Albertsons locations in Phoenix , 10 each in Scottsdale and Mesa , and two Albertsons distribution centers in Phoenix and Tolleson . Some of the Phoenix stores that are part of the divestiture plan include Albertsons on W. Carefree Hwy , N. 19th Avenue , N. Tatum Blvd . , and N. Cave Creek Road . Safeway locations on W. Anthem Way , E. Chandler Boulevard , S. 16th Street , N. 83rd Avenue , E. Chandler Boulevard , W. Baseline Road , E. Elliot Road , W. Osborn Road , E. Camelback Road , W. Bell Road , E. McDowell Road , E. Glendale Avenue , N. Seventh Street , E. Greenway Road , E. Indian School Road , and E. Bell Road are also included.

Kroger and Albertsons Cos . are major employers in Arizona , with 20,200 and 14,500 employees respectively . If the acquisition goes through , Kroger will still have 34 Albertsons and Safeway locations in Arizona , in addition to the 131 Fry 's and Smith 's stores already present in the state.

Impact on the Grocery Industry

The competition in the grocery industry is fierce , with Kroger citing the need for the merger to stay competitive against nonunion rivals like Walmart , Amazon , and Target . By selling off a significant number of stores to C&S Wholesale Grocers , Kroger aims to address regulators ' concerns while still maintaining a strong presence in the Arizona market.

The divestitures are part of a strategic move to navigate the changing landscape of the grocery business and ensure a balance of market power among key players . The outcome of the acquisition deal and the subsequent transfer of stores will have far - reaching implications for both the companies involved and the consumers in Arizona.