The Soldotna and Kenai Carrs-Safeway grocery stores will be divested as a part of the merger between grocery giants Albertsons and Kroger. The list of Albertsons-owned stores in Alaska to be divested was released on Tuesday. It featured 18 locations in Alaska, including the two central peninsula stores, as part of a massive 579-store nationwide divestiture plan.
The company lined up to purchase those 18 Carrs-Safeway stores is C&S Wholesale Grocers, the parent company for Grand Union and Piggly Wiggly. A presentation slide released by Albertsons and Kroger claims that “no stores will close as a result of [the] merger,” “all frontline associates will remain employed,” and “existing collective bargaining agreements [will be] honored” once C&S assumes ownership following the divestiture.
Grand Union is a supermarket chain based primarily in the Northeastern United States and is comprised of all corporate-owned grocery stores. Piggly Wiggly Carolina Co. is based out of South Carolina, with the majority of its stores located on the East Coast. The most notable difference between Grand Union and Piggly Wiggly is that while all stores of the former are corporately owned, 46 of the 48 Piggly Wiggly grocery stores are franchise locations.
In February of this year, the Federal Trade Commission sued to block the proposed merger, claiming that the $24.6 billion deal would eliminate competition and lead to higher prices in American grocery stores. The FTC’s decision came on the heels of substantial opposition to the merger from legislators in Alaska and across the country, who cited concerns over prices and competition, later echoed by the trade commission.
In a letter to the FTC last year, Senators Lisa Murkowski and Dan Sullivan wrote, “We write to express our deep concerns about the agreement and the potential impacts the proposed merger will have on Alaskans. There are simply too many unanswered questions and unforeseen consequences over the horizon should this merger be approved. When reviewing this proposed merger, we ask that you and the Federal Trade Commission (FTC) set a very high approval bar and consider the following issues that are essential to Alaskans’ well-being.”
Congresswoman Mary Peltola sent her own letter to the FTC, calling on them to block the merger over concerns about Alaska’s food security.
Shortly after the merger was announced, members of the Alaska State Legislature added their voices to the opposition as well, writing FTC chairperson Lina Khan to express concerns over, among other things, fair pricing for groceries if the merger were allowed to go through.
On Wednesday, Senator Jesse Bjorkman of Nikiski echoed concerns expressed in last year’s letter after the news of the divestiture plan was announced, stating:
“I have been deeply concerned about the potential merger between Albertsons and Kroger – combining ownership of Fred Meyer and Safeway since the potential deal was announced. I signed on to a letter early on opposing this merger that could lead to the closing of Kenai and Soldotna Safeway stores, higher grocery prices and loss of local jobs. Grocery prices are high enough and we don’t need grocery monopolies driving up the cost of your families food bill every month.”
The full list of Carrs-Safeway stores to be divested includes:
- 1340 Gambell Street, Anchorage
- 1650 W. Northern Lights Boulevard, Anchorage
- 5600 Debarr Road, Anchorage
- 4000 W. Dimond Boulevard, Anchorage
- 1501 Huffman Road, Anchorage
- 7731 E. Northern Lights Boulevard, Anchorage
- 1725 Abbott Road, Anchorage
- 2920 Seward Highway, Anchorage
- 11409 Business Park Boulevard, Eagle River
- 3627 Airport Way, Fairbanks
- 30 College Road, Fairbanks
- 147 Hightower Road, Girdwood
- 3033 Vintage Boulevard, Juneau
- 10576 Kenai Spur Highway, Kenai
- 44428 Sterling Highway, Soldotna
- 301 N. Santa Claus Lane, North Pole
- 664 E. Palmer-Wasilla Highway, Palmer
- 595 E. Parks Highway, Wasilla
Kroger initially announced the merger on October 14, 2022, stating that it would acquire Albertsons for $24.6 billion.