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Monday, October 24, 2005

Will Kroger Make Albertson's Its Biotch?

Struggling northeast grocery chain Alberston’s recently went on sale, and Kroger is one of five interested parties. Some interesting facts: [NYTimes]

The acquisition of Albertson's 2,300 stores would give Kroger a strong presence in the Northeast, a region where the company does not have a significant presence.

The bid comes as traditional supermarkets are struggling to regain market share in the face of discount retailers like Wal-Mart and Costco and the organic and specialty stores like Whole Foods and Wild Oats.

Grocery sales at Wal-Mart are now far larger than that of any supermarket, jumping to $109 billion in 2004 from $82 billion in 2002. Sales at Kroger were $56 billion in 2004.

The combination of Kroger and Albertson's would have sales almost as large as that of Wal-Mart's grocery business. Kroger, which is based in Cincinnati, operates 2,500 stores under names like Fred Meyer, Ralphs, Smith's and King Soopers.

No word yet on whether Albertson’s employees will get parking perks as part of the deal.

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