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The big question is to what extent the Federal Trade Commission will require divestitures in overlapping markets since even though there are a very large number of supermarket chains in any particular market very few chains will dominate.
The big question is to what extent the Federal Trade Commission will require divestitures in overlapping markets since even though there are a very large number of supermarket chains in any particular market very few chains will dominate.
Interestingly, the press releases are saying the companies don't anticipate closing any stores. I find that surprising.
I'm sure some stores will close. Does this merger mean Safeway retains its name, or does it become Albertson's? I know here in the East Albertsons bought the Shaw's supermarkets, but Shaw's retains its name. Also some of the Shaw's were closed after Albertson's purchased them.
In the 1990's Albertsons bought Lucky. The commercials called it a "marriage." Well, Lucky disappeared, which was a loss, because Lucky was a low-cost store and Albertsons is an expensive one. The worst part was that Lucky brand items (Lady Lee) also disappeared. They had good, inexpensive ice cream, but it is no more.
If Albertsons does put their name on Safeway, I hope they will at least leave Safeway's ice cream alone.
The news stories in AZ said that Safeway stores will keep their name. I'm guessing it will be the same all over. I would not expect closures except where stores under both names are really close together, but even that doesn't always happen,, as we saw here with the Smith's/Fry's (Kroger) buyout/merger several years ago.
The news stories in AZ said that Safeway stores will keep their name. I'm guessing it will be the same all over. I would not expect closures except where stores under both names are really close together, but even that doesn't always happen,, as we saw here with the Smith's/Fry's (Kroger) buyout/merger several years ago.
A couple articles I've read suggest that Cerberus will close many of the Safeway stores in Arizona, Colorado, and Texas.
Cerberus bought the Southwest division of Albertsons (with its stores in Arizona) in 2006 and has closed about 1/3 of the Albertsons stores in the state since it bought the division (During the same time Fry's, Sprouts, Walmart, and Whole Foods have expanded in the state).
I'd venture to say that out of the 114 or 115 or so Safeway stores in Arizona (at least), by 2016 that number will be down to around 75-80. Out of the 41 Albertsons stores currently in Arizona, by 2016 I'd expect that number to be down to around 20. I fully expect about 50-60 store closures after this deal goes through.
Kroger had tried to buy Safeway, and some of the Safeway/Albertsons sites in Arizona that are going to be closed/divested by Cerberus would make excellent locations for Kroger's Food4Less concept.
Keeping the name Safeway would make smart business sense since it's been a household name for eons and has a good reputation.
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