Kroger and Albertsons are talking about a merger, Bloomberg reports.
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Kroger and Albertsons are engaged in talks around a potential merger, Bloomberg reported.
A merger would boost the joint chain to a store footprint of over 5,000 locations.
The talks have not yet concluded, although a decision could be reached this week.
Grocery store giants Kroger and Albertsons are discussing a potential merger, according to Bloomberg.
Talks are ongoing and could potentially conclude this week, the business news site said, citing unnamed people familiar with the matter.
In a note dated Monday, JP Morgan analysts described Albertsons as a “consistently improving company in a food-at-home industry that is proving resilient for longer than some observers anticipated,” although they noted that Kroger has the edge in terms of “data analytics and delivery.” Meanwhile, in a separate note, JP Morgan analysts described wanting Kroger to “comp a bit better in relation to certain peers.”
Both chains boast a massive footprint in the United States. Kroger ran 2,726 supermarkets as of January 29, 2022. Kroger’s supermarkets operate under its namesake brand, and “a variety of local banner names,” according to the company’s most-recent annual report to the Securities and Exchange Commission.
Albertsons’ latest annual SEC filing listed 2,276 stores as of February 26, 2022, under a total of 24 different banners.
Together, the two chains would combine for a total of 5,002 locations. The merger alone would not make the combined chain the largest in the United States, however. As of its latest SEC filing, Walmart either owned or leased 5,342 US retail properties across its banner. The company’s total retail units around the globe comes out to 10,593, as of January 31, 2022.
Kroger’s operation dates back to the 19th century, when Bernard Kroger entered the retail business in Cincinnati. Meanwhile, Albertsons was launched by Joe Albertson in Boise in 1939.
This is a developing story. Check back for updates.