Kroger and Albertson's released a list of nearly 600 grocery stores, including 26 in North Texas, that they will sell to a competitor if their $24.6 billion merger is approved.
The proposed merger was announced on Oct. 14, 2022, but has yet to gain regulatory approval. In February, the Federal Trade Commission sued to block the merger, saying the deal was anticompetitive and would eliminate fierce competition, leading to higher prices for shoppers and lower employee wages.
Kroger and Albertsons argued their merger would have the opposite effect and that their plan to divest 579 stores and other assets to Piggly Wiggly-owner C&S Wholesale Grocers would keep the landscape competitive.
All but two of the 28 Texas stores listed for divestiture are in North Texas (list below). The North Texas list includes six Market Street locations, five Albertsons locations, and 15 Tom Thumb locations. Two Randalls locations in Houston and Galveston will also be sold.
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The FTC said it had concerns that C&S, which currently operates just 23 supermarkets and a single retail pharmacy, could remain competitive against a behemoth that, after the merger, would operate more than 5,000 stores and employ nearly 700,000 people across 48 states.
"C&S would face significant obstacles stitching together the various parts and pieces from Kroger and Albertsons into a functioning business—let alone a successful competitor against a combined Kroger and Albertsons," the FTC said in their complaint.
In April, Kroger and Albertsons modified their proposed divestiture package to include another 166 stores, bringing the total sold to C&S to 579. The modified package also included non-store assets, including a dairy in Colorado and six distribution facilities that would enable C&S "to operate competitively following the completion of the proposed merger."
Throughout the merger process, Kroger and Albertsons pledged that no stores would close and no jobs would be lost. Kroger also said all fuel centers and pharmacies associated with the divested stores will remain with the stores and continue to operate.
Kroger and Albertsons hoped the amended divestiture package would bolster their position in regulatory challenges to the proposed merger, including pending court proceedings. The FTC hearing is scheduled for Aug. 26 in Portland. Judge Adrienne Nelson is hearing the case.
WHICH NORTH TEXAS GROCERY STORES WILL BE SOLD?
- Market Street — 985 W Bethany Drive, Allen
- Albertsons — 6220 US Highway 287, Arlington
- Albertsons — 301 SW Plaza Shopping Center, Arlington
- Tom Thumb — 1701 W Randol Mill Road, Arlington
- Tom Thumb — 2755 N Collins, Arlington
- Tom Thumb — 6333 E Mockingbird Lane, Dallas
- Albertsons — 2321 W University Drive, Denton
- Albertsons — 1155 N Main Street, Euless
- Market Street — 3800 Long Prairie Road, Flower Mound
- Tom Thumb — 4301 Cross Timbers Road, Flower Mound
- Market Street — 11999 Dallas Parkway, Frisco
- Market Street — 4268 Legacy Drive, Frisco
- Tom Thumb — 4848 Preston Road, Frisco
- Tom Thumb — 5550 FM 423, Frisco
- Randalls — 2931 Central City Boulevard, Galveston
- Randalls — 14610 Memorial Drive, Houston
- Tom Thumb — 612 Grapevine Highway, Hurst
- Tom Thumb — 1000 Keller Parkway, Keller
- Market Street — 3145 E Broad Street., Mansfield
- Market Street — 6100 W Eldorado Parkway, McKinney
- Tom Thumb — 6800 W Virginia Parkway, McKinney
- Tom Thumb — 1501 Pioneer Road, Mesquite
- Tom Thumb — 3945 Legacy Drive, Plano
- Tom Thumb — 1380 W Campbell Road, Richardson
- Tom Thumb — 3070 N Goliad, Rockwall
- Tom Thumb — 551 Laurence Drive, Rockwall
- Albertsons — 1201 N Saginaw Boulevard., Saginaw
- Tom Thumb — 101 Trophy Lake Drive, Trophy Club