Kroger and Albertsons Merger Could Impact Fuel Retailing World

The two grocery stores would operate more than 1,000 fueling centers after divestiture.

July 29, 2024

Dow Jones Newswires reports that supermarket giants Kroger and Albertsons “would sell about 10% of their combined retail fuel networks to C&S Wholesale Grocers under a divestiture plan designed to address the government's antitrust concerns over their proposed merger,” according to an OPIS analysis.

The article states that “the plan would have a significant impact on one of the nation's largest and most competitive fuel brands. Most of the divested fuel centers are branded Safeway, part of the Albertsons network. The analysis suggests that about one in five Safeway fuel centers would be rebranded if the merger and divestiture plan go forward.”

Safeway ranks 34th in the U.S. in gasoline brand market share, according to OPIS MarketSharePro.

Last week, the companies released a detailed list of the stores targeted for divestiture. About 147 of the 579 stores targeted for divestiture have fuel centers. Kroger and Albertsons operate a total of 1,408 retail fuel outlets alongside supermarkets, according to their websites.

Kroger shared a statement with Supermarket News that read, in part: "The expanded divestiture package will further ensure C&S can continue serving and supporting communities for years to come. The divestiture plan will ensure zero stores or fuel centers will close as a result of the merger, and all frontline associates will remain employed.”

The merger of the two grocers was first announced in October 2022 and is winding its way through the regulatory process. Last week, the grocers agreed to temporarily halt the deal to respond to antitrust lawsuits.

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