Government & Politics July 10, 2024 1:48:31 pm

Nearly two dozen Boulder Valley, Northern Colorado Safeway stores could be sold

Safeway Sign — More than 20 Safeway stores in Northern Colorado and the Boulder Valley would be sold by Albertsons if federal regulators approve its proposed $24.6 billion merger with Kroger. Lucas High/BizWest.

C&S Wholesale Grocers Inc., a privately held New Hampshire company that owns several grocery-store brands such as Piggly Wiggly, would be the buyer if Abertsons’ divestiture plan — developed as a way to assuage regulators’ concerns over antitrust issues related to the consolidation of two of the nation’s largest grocery-store operators — comes to fruition.

More than 20 Safeway stores in Northern Colorado and the Boulder Valley would be sold by Albertsons Cos. (NYSE: ACI) if federal regulators approve its proposed $24.6 billion merger with Kroger Co. (NYSE: KR), the parent company of Colorado-based grocery chain King Soopers.

The merger proposal has drawn criticism from the Federal Trade Commission and Colorado Attorney General Phil Weiser, who last year joined a FTC lawsuit in Washington that is attempting to block the deal.

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In February, Weiser filed his own lawsuit against the companies in Denver District Court, arguing that the merger would reduce competition, hurting both consumers and grocery-store employees.

“Kroger and Albertsons compete head-to-head in several ways. For example, the companies monitor each other closely on price and adjust their prices based on what the other one is doing. A post-merger Kroger would have the ability to raise prices, pinching consumers,” Weiser’s office said in a statement when the Denver lawsuit was filed. “In urban areas, where consumers shop close to home, the consolidation of Kroger and Albertsons stores would create significant market power to raise prices and reduce quality and services. Consumers in other areas of the state would feel the effects even more.”

The merger plan — along with the recent list of Safeway stores that Albersons planned to sell — faces strong opposition from labor leaders, including United Food & Commercial Workers Local 7, the union that represents King Soopers grocery workers across the Front Range, including in Northern Colorado and the Boulder Valley.

“We want to assure you that this changes nothing,” UFCW president Kim Cordova said in a message to union members posted this week on the Local 7’s website. “The merger is NOT a done deal, and we continue to do everything we can to stop it.”

The UFCW message continued: “As you know, the proposed mega-merger puts our members’ jobs and our communities’ wellbeing at risk. If successful, the merger would have devastating impacts across our country, as made evident by the hundreds of stores included on the divestiture list released today. We cannot entrust our grocery stores — which are integral to our communities and our members — to the untested, inexperienced C&S Wholesale Grocers.”

Cordova called Albertsons’ move to release the locations of the Safeway stores it plans to sell a “last-ditch … underhanded attempt to influence the courts and create the perception that the mega-merger is close to final, creating more uncertainty for our members like you.”

If the deal is consummated, Albertsons plans to sell a total of 579 stores in 19 states, including 91 in Colorado.

The Boulder Valley and Northern Colorado Safeway stores that would be sold include the following locations: