The proposed $24.6 billion merger between grocery giants Kroger and Albertsons has sparked significant attention, especially with the recent announcement of the 579 stores slated for divestiture. Four stores in the Greater Palm Springs area have been identified to be sold to C&S Wholesale Grocers if the merger gains federal approval.
In California, 63 stores are marked for divestiture. The affected stores in the Greater Palm Springs area include:
- Vons, 78271 Highway 111, La Quinta
- Albertsons, 42095 Washington Street, Palm Desert
- Albertsons, 1751 N Sunrise Way, Palm Springs
- Vons, 4733 E Palm Canyon Drive, Palm Springs
Kroger CEO Rodney McMullen assured employees at the impacted locations through a memo that their jobs would be secure under C&S, which has pledged to maintain employment for all current staff. Despite these assurances, the merger faces staunch opposition from various quarters, including the United Food and Commercial Workers (UFCW) union and federal regulators.
The Federal Trade Commission (FTC) is challenging the merger, arguing that it could lead to higher grocery prices by reducing marketplace competition and potentially harming workers. Kroger has rebutted these claims, insisting that the merger would not result in store closures or disruptions in operations. They argue that the merger would provide customers with lower prices and more choices.
The UFCW, representing grocery workers, remains firmly against the merger. “Today’s announcement changes nothing,” the union stated, highlighting the ongoing legal battles and hearings scheduled from July through September. The union’s primary concerns focus on the potential negative impacts on workers, shoppers, suppliers, and communities.
In response to the proposed divestiture, Kroger emphasized the benefits of their merger, asserting that the plan is essential to delivering meaningful improvements to associates, customers, and communities nationwide. They highlighted C&S’s commitment to preventing store closures and maintaining employment and collective bargaining agreements.
C&S Wholesale Grocers, founded in 1918 as a supplier to independent grocery stores, now serves customers of all sizes. It supplies over 100,000 products to over 7,500 independent supermarkets, chain stores, military bases, and institutions. C&S also operates and supports corporate grocery stores and serves independent franchisees under a chain-style model throughout the Midwest, South, and Northeast. In 2021 and 2022, the company got into the grocery store business at the retail level by purchasing several Piggly Wiggly (in the Midwest) and Grand Union (in New York) grocery stores.
The path forward for the Kroger-Albertsons merger remains fraught with legal and regulatory hurdles. With hearings set to proceed, the fate of the affected Albertsons and Vons stores in the Greater Palm Springs area and the broader implications for the grocery industry and its workers hangs in the balance.
