The proposed mega-merger between grocery giants Kroger and Albertsons has significant local implications, particularly for the La Crescenta Montrose area. Among the 579 stores slated for divestment, two Vons locations are affected: one at 3233 Foothill Blvd. and another at 2039 Verdugo Blvd. The majority of the 63 California stores impacted are located in Southern California.
Kroger’s CEO informed employees at the affected stores via a memo that these locations would be sold to C&S Wholesale Grocers if the merger proceeds. It is anticipated that all employees will retain their positions with C&S, according to company officials.
The Federal Trade Commission (FTC) is challenging the $24.6 billion merger, arguing that it would reduce competition in the marketplace, potentially leading to higher grocery prices and negative impacts on workers. Kroger has countered these claims, asserting that no stores, distribution centers, or manufacturing facilities will be closed and that the merger will result in lower prices and more choices for customers.
The United Food and Commercial Workers (UFCW) union, representing grocery workers, has reiterated its opposition to the merger. The union’s statement emphasized that the announcement does not change their stance and highlighted the potential harms to workers, shoppers, suppliers, and communities. The union praised the attorneys general from Colorado and Washington, as well as the FTC, for their rejection of the merger proposal earlier this year.
The legal challenges to the merger are ongoing, with hearings scheduled to begin at the end of July and continue through September.
