SAN DIEGO (CNS) — On Tuesday, Kroger and Albertsons released a list of 579 stores that would be sold under a proposed mega-merger of the grocery giants, including 63 locations in California and 11 stores in San Diego.
The vast majority of the California locations are in Southern California. According to Bloomberg, Kroger's CEO sent a memo to employees at all affected stores, notifying them of the plans to spin off the locations to C&S Wholesale Grocers if the merger goes through. Officials said that all employees are expected to be able to maintain their employment with C&S.
The merger is being challenged by the Federal Trade Commission, which claims the proposed $24.6 billion merger would lead to higher grocery prices through a reduction in marketplace competition and also potentially negatively affect workers.
Kroger has denied such claims, insisting that no stores, distribution centers, or manufacturing facilities would be closed and claiming that "customers will benefit from lower prices and more choices'' through the merger.
The United Food and Commercial Workers union, representing grocery workers, issued a statement Tuesday saying it continues to oppose the merger.
"Today's announcement changes nothing,'' according to the union. "The merger is not a done deal, far from it. We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago -- because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal. The merger proposal was rejected in January and February by the Attorneys General from the states of Colorado and Washington and the Federal Trade Commission. We applaud their actions. They have been in possession of this proposed divestiture list, made public today by the companies, for months, and that did not change their opposition to the proposed merger..."
The legal challenges associated with the proposed merger are expected to proceed. Hearings are scheduled to start at the end of July and continue through September.
San Diego stores that would be sold off in the proposed merger are:
Vons - 6951 El Camino Real, Carlsbad
Vons - 3439 Via Montebello, Carlsbad
Vons - 2606 Del Mar Heights Road, Del Mar
Albertsons - 2899 Jamacha Road, El Cajon
Pavilions - 7544 Girard Ave, La Jolla
Pavilions - 3850 Valley Centre Dr, San Diego
Vons - 11986 Bernardo Plaza Dr, San Diego
Vons - 1702 Garnet Ave, San Diego
Vons - 2495 Truxtun Road Ste 100, San Diego
Vons - 9643 Mission Gorge Road, Santee
Albertsons - 543 Sweetwater Road, Spring Valley
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