![]() Soaring food prices are a key driver behind inflation in the US, while industry consolidation has given top players in the space much greater market share. These talks come amid a dramatically different dealmaking landscape. It has more than 2,200 supermarkets in 34 states and Washington, D.C., with about 290,000 employees, 25,000 of whom work in California. by revenue.Īlbertsons is made up of 20 brands, including Safeway, Acme and Tom Thumb. The company trails behind Walmart, which is the top grocer in the U.S. It has nearly 2,800 stores in 35 states and about 420,000 employees. Kroger is the nation’s largest supermarket chain with about two dozen banners, including Fred Meyer, Ralphs, King Soopers, Harris Teeter and its namesake brand. and a group of investment firms for about $9.8 billion, according to data compiled by Bloomberg. supermarket deal since the last time Albertsons changed hands in 2006, when it was bought by Supervalu, CVS Health Corp. retail transactions in years, and the biggest U.S. The potential deal would be among the largest U.S. ![]() Representatives for Albertsons and Kroger couldn’t immediately be reached for comment. Any potential transaction, if agreed, may face antitrust scrutiny and require asset sales. The exact structure and price of the deal couldn’t immediately be learned. No final decisions have been made and talks could still be delayed or falter. in a deal that would create a US grocery giant, people familiar with the matter said.Ī cash-and-stock deal valuing Albertsons at about $25 billion could be reached as soon as Thursday evening in New York, one of the people said, asking not to be identified discussing confidential information. is in talks about a tie-up with rival Albertsons Cos. Davis, Ruth David, Ed Hammond and Crystal Tse | Bloomberg The company operates stores across 34 states and D.C., trading under 24 banners including Albertsons, Safeway SWY, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market.By Michelle F. operated 2,272 retail food and drug stores with 1,726 pharmacies, 401 fuel centers, 22 distribution centers and 19 manufacturing facilities. ![]() 9, 2023, Boise, Idaho-based Albertsons Companies Inc. We continue to partially offset these headwinds with the benefits of our productivity initiatives," he added.Īs of Sept. “We also expect slowing food inflation, ongoing labor investment, broad inflationary cost increases and significant declines in Covid-19 vaccination and test kit revenue. "We are also mindful of a more challenging economic backdrop, including declining federal and state government assistance and higher interest rates, and their effects on consumer spending and our business." ![]() "During the second quarter, we continued to execute against our 'Customers for Life' transformation strategy and drive solid operating results, despite increasing macro-economic headwinds,” said Vivek Sankaran, CEO, Albertsons. "Ultimately though, the company is hamstrung by its smaller size relative to its potential acquirer (Kroger’s full-year revenue of $148 billion is nearly double Albertsons’ $78 billion), but we believe it remains in a better position than smaller rivals that do not possess its ability to leverage costs.” Albertsons Sees Headwinds Morningstar added: “We see Albertsons as a step behind narrow-moat Kroger in key areas like digital fulfillment, private-label, and data analytics (loyalty membership was up 17% to 37.4 million), yet management has made progress in narrowing the gap. Mark Felix/Bloomberg © 2023 Bloomberg Finance LP The Kroger and Albertsons merger will create a significantly larger grocery group.
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