ST. GEORGE — Two grocery stores in the St. George area are set to be sold by Kroger Foods should that company’s bid to merge with Albertsons go through.
As part of a pending $25 million merger plan announced in October 2022, the two companies released a list of stores to be offloaded earlier this week. In all, 579 grocery stores, six distribution centers and one processing plant spread across 18 states and the District of Columbia are to be sold.
Four stores and one distribution center in Utah are on that list, with the Albertsons stores on Dixie Drive in St. George and Red Cliffs Drive in Washington City among them. The other stores and a distribution center are located in the Salt Lake City area and West Jordan.
St. George News contacted the management of the local Albertsons stores for comment and was referred to details of the divestiture plan posted on the Albertsons’ corporate website in April.
Initially, 166 stores were set to be sold, but that number was bumped up to 579 in response “to concerns raised by federal and state antitrust regulators regarding the original agreement,” according to a press release. These stores will be sold to C&S Wholesale Grocers, LLC, provided the proposed merger goes through.
The Federal Trade Commission sued to block the merger earlier this year, alleging it was “anticompetitive” and would lead to higher prices and fewer options for customers. Eight states have also issued legal challenges to the merger on similar grounds.
Kroger and Albertsons officials argue the opposite and claim the merger and updated plan will be a benefit for shoppers and employees alike.
“The updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages,” Rodney McMullen, Kroger’s chairman and CEO, said in the press release.
“Our proposed merger with Albertsons will bring lower prices and more choices to more customers and secure the long-term future of unionized grocery jobs.”
Kroger Foods maintains a presence in Southern Utah through its Smith’s brand of grocery stores.
Copyright St. George News, SaintGeorgeUtah.com LLC, 2024, all rights reserved.