How Kroger merger could impact Phoenix grocery stores | Phoenix New Times

Kroger merger includes selling 101 Arizona stores. Here’s what it means

Kroger wants to sell the stores as part of its Albertsons and Safeway deal. But your neighborhood market isn’t closing.
Kroger is seeking to sell 101 Arizona locations of Safeway and Albertsons.
Kroger is seeking to sell 101 Arizona locations of Safeway and Albertsons. Caldorwards4, Wikimedia commons
Share this:
Kroger — the parent company of Fry's — set off a panic among shoppers in Arizona on Tuesday when it announced which grocery stores it wants to sell as part of a merger with Albertsons and Safeway.

But panicked shoppers on social media, don't worry. Your neighborhood Albertsons and Safeway stores aren't closing.

Kroger proposed selling a large portion of its grocery stores to East Coast chain C&S Wholesale Grocers. The sale would include 101 Arizona stores — all Safeway and Albertsons locations.

Divesting the stores is part of Kroger's $25 billion merger with Albertsons. But it's not a done deal. Proceedings in a lawsuit filed by the Federal Trade Commission to prevent the deal are scheduled to begin on Aug. 26.

Why is Kroger selling grocery stores?

Kroger wants to sell the stores in order to merge with another grocery company. Basically, it's contracting in order to expand.

Kroger wants to buy Albertsons, citing the need to strengthen itself against competitors, including Walmart, Costco, Target and Amazon.

Regulators, including the Federal Trade Commission and Arizona Attorney General Kris Mayes, have stood in the way of the merger in efforts to protect consumers. Mayes is concerned about the impact on employees in Arizona, where Kroger and Albertsons employ 35,000 people across 250 stores. The companies are among the Top 10 private employers in the state.

The proposed merger was announced in October 2022, but in February, the FTC sued in order to stop the deal. Regulators are concerned that a joined Kroger-Albertsons company would have too large of a share of the grocery market in Arizona and other states. This could lead to diminished grocery store competition and open the door for price fixing.

By selling stores in states where the merger would cause almost complete control of the grocery market, Kroger and Albertsons hope to ease regulators' concerns. The other states with the highest number of proposed sales include Washington with 124 stores and Colorado with 91. Nationwide, Kroger plans to sell 579 stores, six distribution centers and one dairy plant.

What this means for Safeway and Albertsons stores in Arizona

The sale has not yet been approved. So for your local stores, nothing is changing — yet. But if and when the sale does go through, your neighborhood likely won't lose a grocery store.

C&S Wholesale Grocers, the potential purchaser, announced plans to continue operating the stores and to retain employees. It is unclear what brand they might become as C&S encompasses Piggly Wiggly, Grand Union Supermarkets and a selection of smaller private brands.

But in the "Comprehensive Divestiture Plan" released by Kroger and Albertsons, C&S shared that, "no stores will close as a result of the merger and that all frontline associates will remain employed."

Which Safeway and Albertsons in Arizona might be sold?

Across Arizona, 101 stores are proposed to be sold. They include locations of Safeway and Albertsons from Flagstaff to Tucson. Here's the full list:

Safeway — 3185 W. Apache Trail, Apache Junction
Safeway — 1751 Hwy. 95, Bullhead City
Safeway — 1637 N. Trekell Road, Casa Grande
Safeway — 29834 N. Cave Creek Road, Cave Creek
Albertsons — 2935 E. Riggs Road, Chandler
Albertsons — 4060 W. Ray Road, Chandler
Albertsons — 3145 S. Alma School Road, Chandler
Safeway — 4970 S. Alma School Road, Chandler
Safeway — 1159 W. Chandler Blvd., Chandler
Safeway — 1060 E. Ray Road, Chandler
Safeway — 1031 N. State Route 89, Chino Valley
Safeway — 1635 E. Cottonwood St., Cottonwood
Safeway — 1500 E. Cedar Ave., Flagstaff
Safeway — 1201 S. Plaza Way, Flagstaff
Safeway — 4910 N. U.S. Hwy. 89, Flagstaff
Safeway — 3325 N. Hunt Hwy., Florence
Safeway — 13733 N. Fountain Hills Blvd., Fountain Hills
Safeway — 4823 S. Hwy. 95, Ft. Mohave
Albertsons — 861 E. Warner Road, Gilbert
Safeway — 90 S. Val Vista Drive, Gilbert
Safeway — 5137 E. Baseline Road, Gilbert
Albertsons — 5040 W. Cactus Road, Glendale
Safeway — 20205 N. 67th Ave. #100, Glendale
Safeway — 3800 W. Happy Valley Road, #107, Glendale
Safeway — 240 S. Hill St., Globe
Safeway — 14175 W. Indian School Road, Goodyear
Safeway — 440 N. Estrella Pkwy., Goodyear
Safeway — 9890 S. Estrella Pkwy., Goodyear
Safeway — 1305 W. Duval Mine Road, Green Valley
Safeway — 3970 Stockton Hill Road, Kingman
Safeway — 3125 N. Stockton Hill Road, Kingman
Safeway — 1650 McCulloch Blvd. N., Lake Havasu City
Albertsons — 1980 McCulloch Blvd. N., Lake Havasu City
Albertsons — 12970 W. Indian School Road, Litchfield Park
Albertsons — 9243 E. Baseline Road, Mesa
Albertsons — 441 N. Val Vista Drive, Mesa
Albertsons — 2727 N. Power Road, Mesa
Albertsons — 325 S. Power Road, Mesa
Albertsons — 1951 W. Baseline Road, Mesa
Safeway — 3622 E. Southern Ave., Mesa
Safeway — 1902 W. Main St., Mesa
Safeway — 1225 W. Guadalupe Road, Mesa
Safeway — 1855 N. Power Road, Mesa
Safeway — 4316 S. Signal Butte Road, Mesa
Safeway — 12122 N. Rancho Vistoso Blvd., Oro Valley
Albertsons — 8950 W. Bell Road, Peoria
Albertsons — 8240 W. Deer Valley Road, Peoria
Safeway — 10641 W. Olive Ave., Peoria
Safeway — 12320 N. 83rd Ave., Peoria
Safeway — 28455 N. Vistancia Blvd., Peoria
Albertsons — 3130 W. Carefree Hwy., Phoenix
Albertsons — 8035 N. 19th Ave., Phoenix
Albertsons — 21001 N. Tatum Blvd. #76, Phoenix
Albertsons — 18411 N. Cave Creek Road, Phoenix
Safeway — 3655 W. Anthem Way, Phoenix
Safeway — 4005 E. Chandler Blvd., Phoenix
Safeway — 6202 S. 16th St., Phoenix
Safeway — 4811 N. 83rd Ave., Phoenix
Safeway — 1334 E. Chandler Blvd., Phoenix
Safeway — 5035 W. Baseline Road, Phoenix
Safeway — 4747 E. Elliot Road, #22, Phoenix
Safeway — 520 W. Osborn Road, Phoenix
Safeway — 3132 E. Camelback Road, Phoenix
Safeway — 3450 W. Bell Road, Phoenix
Safeway — 340 E. McDowell Road, Phoenix
Safeway — 810 E. Glendale Ave., Phoenix
Safeway — 13440 N. Seventh St., Phoenix
Safeway — 4747 E. Greenway Road, Phoenix
Safeway — 4750 E. Indian School Road, Phoenix
Safeway — 550 E. Bell Road, Phoenix
Safeway — 1044 Willow Creek Road, Prescott
Safeway — 450 White Spar Road, Prescott
Safeway — 7720 E. Hwy. 69, Prescott Valley
Safeway — 18495 E. Queen Creek Road, Queen Creek
Safeway — 40950 N. Ironwood Drive, San Tan Valley
Albertsons — 11475 E. Via Linda, Scottsdale
Albertsons — 2785 N. Scottsdale Road, Scottsdale
Albertsons — 6965 N. Hayden Road, Scottsdale
Safeway — 23565 N. Scottsdale Road, Scottsdale
Safeway — 7920 E. Chaparral Road, Scottsdale
Safeway — 14696 N. Frank Lloyd Wright Blvd., Scottsdale
Safeway — 20901 N. Pima Road, Scottsdale
Safeway — 6501 E. Greenway Pkwy. #4, Scottsdale
Safeway — 32551 N. Scottsdale Road, Scottsdale
Safeway — 10773 N. Scottsdale Road, Scottsdale
Safeway — 2190 E. Fry Blvd., Sierra Vista
Safeway — 10926 W. Bell Road, Sun City
Safeway — 13503 W. Camino Del Sol, Sun City West
Albertsons — 14551 W. Grand Ave., Surprise
Safeway — 17049 W. Bell Road, Surprise
Safeway — 13828 W. Waddell Road, Surprise
Safeway — 1515 E. Elliot Road, Tempe
Safeway — 926 E. Broadway Road, Tempe
Albertsons — 1350 N. Silverbell Road, Tucson
Albertsons — 9595 E. Broadway Blvd., Tucson
Albertsons — 7300 N. La Cholla Blvd., Tucson
Safeway — 6360 E. Golf Links, Tucson
Safeway — 9050 E. Valencia Road, Tucson
Safeway — 9460 E. Golf Links Road, Tucson
Safeway — 9100 N. Silverbell, Tucson
Safeway — 13380 E. Mary Ann Cleveland Way, Vail
Can you help us continue to share our stories? Since the beginning, Phoenix New Times has been defined as the free, independent voice of Phoenix — and we'd like to keep it that way. Our members allow us to continue offering readers access to our incisive coverage of local news, food, and culture with no paywalls.