Two U.S. grocery store giants, Kroger and Albertsons, are set to merge their companies, becoming an even larger grocery store behemoth. On Oct 14, Kroger bid $24.6 billion to acquire Albertsons Companies Inc., setting the stage to be the largest privately owned grocery segment fleet in the United States with 2,400 tractors, as reported by Commercial Carrier Journal.
Kroger, an Ohio based company, has 2,800 stores across 35 states, while Albertsons, an Idaho based company, operates 2,200 stores across 34 states. The merge will combine these totals, as well as those of distribution centers and manufacturing plants
There will be 4,996 stores operated under one name, along with 66 distribution centers and 52 manufacturing plants.
Its combined distributions centers and store networks will expand their supplier base, the companies say their range will be 85 million households, which will in turn optimize their supply chain.
Such a merge will give allow for better competition with companies like Amazon and Walmart who have increased their interactions with grocery sales and delivery.
The Kroger-Albertsons merge will see nearly 34,000 private-label products to be available for delivery. And since the two companies originally operated in different U.S. regions, Kroger in the East and Albertsons in the West, the geographical regions for these deliveries will increase.
Such a notable merge of two grocery store powerhouses will take a while to complete, with an anticipated conclusion to the details of the merge not happening until 2024.
