The poll results are in. According to a report from Reuters, Kroger and Albertsons are discussing the sale of 250-300 stores in order to satisfy antitrust concerns around their proposed merger. Kroger has said in a financial filing that if the companies are forced to divest more than 650 locations, the merger would be reconsidered. --
So, we asked: Is that enough stores? Too many? And you answered: That’s plenty (47%) No way, needs to be more (46%) Other, tell us in the comments (6%) You also said:
Mike Peterson, SVP Inclusion & Culture at Universal Chain, Inc. I don't see how they do it in the PNW and the buyers being successful - that's been tried in the past and Albertsons/Safeway ended up getting most of them back for pennies. Scott Stahl, senior sales representative for Frito Lay, retired Safeway was on the rocks when Albertsons took them over. Albertsons stores were going away like Safeway’s stores because their business model was not sustainable. The two entities combined have not done any better and the closure of stores in predestined. While WinCo, Costco, Kroger, Dollar general, Grocery Outlet and some others have increased market share. This reset could easily become a good thing for the grocery industry. Failed business models need to go away. In my 42-year grocery wholesale sales career, I can’t tell you how many grocery chains have just ceased to exist. That number would be large. Sustainable business models will replace the vacant locations and the cycle will continue. Nancy Z., sales director at Compana Pet Brands Divesting stores will come and hopefully lead to lower prices for shoppers, but doesn’t address the ongoing need for markets (of any banner/brand), in underserved areas of the country. Beau Falla, business owner at Consolidated Mechanical, Inc. The only people that will lose in this are front line employees and the consuming public. These two squaring off across the street from each other is what keeps prices in check….not a CEO promise. ** Have another thought? Weigh in on our LinkedIn poll here, or email SN Executive Editor Chloe Riley at chloe.riley@informa.com . Have a great weekend. WHAT DO YOU THINK? |