Dozens of Chicago area Mariano's, Jewel-Osco stores to be sold in supermarket merger talks
CHICAGO - Nearly three-dozen Mariano's and Jewel-Osco stores in the Chicago area could be sold as part of a proposed merger between supermarket chains Kroger and Albertsons.
As part of a divestiture plan, the companies announced Tuesday they have now identified 579 stores that would be sold in markets where they overlap to C&S Wholesale Grocers, a New Hampshire grocery supplier and operator, in an effort to quell the federal government's concerns about the proposed merger.
In April, Kroger and Albertsons announced an updated plan to sell 579 stores for $2.9 billion to C&S after the U.S. Federal Trade Commission deemed their initial plan of 413 stores "inadequate". The FTC said it would give C&S a hodgepodge of unconnected stores and brands, leaving it ill-equipped to compete with a combined Kroger and Albertsons.
"We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come," C&S CEO Eric Winn said in a statement.
The majority of the stores in the Chicago area that are impacted by the updated plan carry the Mariano's banner, while four Jewel-Osco locations will also be included. Those stores include:
Jewel-Osco locations:
12001 S Pulaski Rd, Alsip
87 W 87th St, Chicago
1537 N Larkin Ave, Joliet
12803 S Harlem Ave, Palos Heights
Mariano's locations:
802 E Northwest Hwy, Arlington Heights
144 S Gary Ave, Bloomingdale
3350 N Western Ave, Chicago
5353 N Elston Ave, Chicago
1800 W Lawrence Ave, Chicago
5201 N Sheridan Rd, Chicago
1500 N Clybourn Ave Ste 104, Chicago
3030 N Broadway Ste 100, Chicago
3857 S Dr. Martin Luther King Jr. Dr, Chicago
105 Northwest Hwy, Crystal Lake
2999 Waukegan Rd, Deerfield
10 E Golf Rd, Des Plaines
678 N York St, Elmhurst
21001 S LaGrange Rd, Frankfort
6655 Grand Ave, Gurnee
1350 E Route 22, Lake Zurich
345 W Roosevelt Ave, Lombard
1300 S Naper Blvd, Naperville
784 Skokie Blvd, Northbrook
11000 S Cicero Ave, Oak Lawn
9504 142nd St, Orland Park
545 N Hicks Rd, Palatine
1900 S Cumberland Ave, Park Ridge
950 Brook Forest Ave, Shorewood
3358 W Touhy Ave, Skokie
1720 N Milwaukee Ave, Vernon Hills
3020 Wolf Rd, Westchester
4700 Gilbert Ave, Western Springs
150 W 63rd St, Westmont
625 S Main St, Wheaton
1822 Willow Rd, Winnetka
It’s unclear if the new plan will satisfy regulators. In February, the U.S. Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants, saying the lack of competition would lead to higher grocery prices and lower wages for workers.
Under the updated plan, Kroger would sell its Haggen banner to C&S. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores. Under the proposal, C&S would keep all of the stores open and honor any labor agreements.
Kroger and Albertsons announced their planned merger in October 2022. The companies say it’s necessary so they can better compete with Walmart, Amazon and other big rivals.
An Albertsons Cos. spokesperson released the following statement:
"C&S is a well-capitalized industry leader in wholesale grocery supply—currently serving more than 7,500 independent supermarkets, retail chain stores, and military bases—with a strong track record as a successful grocery retailer. Their purchase of these assets—along with the associates who will transition to C&S post-close—will enable their company to be one of the leading grocery retailers in the United States, providing communities and consumers with even more choices and access to fresh, affordable food options.
Both C&S and Kroger have each committed that no frontline workers will lose their jobs and no stores will close as a result of the merger. Furthermore, associates will also continue to receive the competitive wages and benefits that they do today, maintaining their pay, health, and wellness plans, and all collective bargaining agreements where they are in place."