Kroger and Albertsons have revealed the 62 Oregon stores they plan to sell off to satisfy antitrust regulators as part of their proposed merger. Surprisingly, none of the Fred Meyer stores are on the list, as Kroger has stated it will not part with any Fred Meyer locations. Experts believe this decision is due to the unique offerings of Fred Meyer stores, which go beyond food to include general merchandise like home goods and clothing. Kroger’s focus on competing with Walmart, Amazon, and Costco through a broader range of offerings may also be a factor in keeping Fred Meyer stores.
The merger has faced opposition from regulators, including the Federal Trade Commission and several states, leading to a pending trial next month. Analysts highlight the importance of customer data in today’s grocery industry, with big players like Walmart and Amazon using data monetization and advertising to drive profits. Kroger’s decision to retain Fred Meyer stores may also be aimed at appeasing regulators concerned about the ability of the chosen buyer, C&S Wholesale Grocers, to manage a variety of retail formats.
Overall, the sale of 579 stores nationwide, including distribution centers and a dairy plant, would put 36% of Kroger and Albertsons’ Oregon footprint in the hands of C&S. Oregon has seen a similar grocery merger in the past, which resulted in store closures and bankruptcies. Kroger believes C&S is better positioned to handle the acquisition, but regulators remain skeptical, citing past experiences. As the trial approaches, the future of the merger and the fate of these stores hang in the balance.
Source
Photo credit www.oregonlive.com