Kroger Announces Sale of 35 Mariano's and Jewel Locations

Money | July 9, 2024, 7:04 p.m.

Grocery giants Kroger and Albertsons plan to sell off 35 stores in Illinois, including eight in Chicago, in order to gain federal approval for their megamerger. The majority of the stores to be sold are Kroger-owned Mariano’s locations, with only four being Albertsons-owned Jewel-Osco stores. The sale would be to C&S Wholesale Grocers for $2.9 billion, with 31 Mariano’s stores and the Mariano’s brand name included in the deal. This decision comes as the companies face federal scrutiny over their $24.6 billion merger, with concerns raised about potential price increases for consumers. Despite plans to honor existing collective bargaining agreements and keep frontline grocery workers employed, labor unions and elected officials continue to oppose the merger. The trial to block the merger is set to begin in August, with uncertainties remaining about whether the divestiture plan will satisfy regulators.