In an effort to secure federal approval for a proposed merger, Kroger and Albertsons announced that they would sell additional stores as part of a divestiture agreement, including dozens in Illinois.
Nearly three-dozen Illinois grocery stores are being sold to another operator as Kroger and Albertsons continue pursuing a massive merger that could completely transform the industry.
As part of those ongoing talks and in an effort to convince federal regulators to allow the merger to proceed, the companies agreed to sell nearly 600 stores to C & S in April 2024. Those stores weren't identified at the time, but on Tuesday a press release identified the 35 stores in Illinois that would be part of the sale.
The divestment sale is meant to convince regulators to allow the merger to move forward, though a lawsuit by the Federal Trade Commission remains ongoing as they accuse the companies of violating antitrust laws.
The stores that will be part of the divestment sale will not close, according to the companies, and existing collective bargaining agreements would still be honored under the arrangement.
Here is the full list of Illinois stores impacted by the sale:
Jewel-Osco Locations:
- 12001 South Pulaski Road, Alsip
- 87 West 87th Street, Chicago
- 1537 North Larkin Avenue, Joliet
- 12803 South Harlem Avenue, Palos Heights
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Mariano's Locations:
- 802 East Northwest Highway, Arlington Heights
- 144 South Gary Avenue, Bloomingdale
- 3350 North Western Avenue, Chicago
- 5353 North Elston Avenue, Chicago
- 1800 West Lawrence Avenue, Chicago
- 5201 North Sheridan Road, Chicago
- 1500 North Clybourn Avenue Suite 104, Chicago
- 3857 South Dr. Martin Luther King Jr. Drive, Chicago
- 105 Northwest highway, Crystal Lake
- 2999 Waukegan Road, Deerfield
- 10 East Golf Road, Des Plaines
- 678 North York Street, Elmhurst
- 21001 South LaGrange Road, Frankfort
- 6655 Grand Avenue, Gurnee
- 1350 East Route 22, Lake Zurich
- 345 West Roosevelt Avenue, Lombard
- 1300 South Naper Boulevard, Naperville
- 784 Skokie Boulevard, Northbrook
- 11000 South Cicero Avenue, Oak Lawn
- 545 North Hicks Road, Palatine
- 1900 South Cumberland Avenue, Park Ridge
- 3358 West Touhy Avenue, Skokie
- 1720 North Milwaukee Avenue, Vernon Hills
- 3020 Wolf Road, Westchester
- 4700 Gilbert Avenue, Western Springs
- 150 West 63rd Street, Westmont
- 625 South Main Street, Wheaton
- 1822 Willow Road, Winnetka
Albertsons currently operates 188 Jewel-Osco locations in Illinois, Indiana and Iowa, while Kroger operates an unspecified number of locations in Illinois under its own banner.
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Even with the revised divestiture agreement, there are still questions about whether the moves will be enough to earn federal approval of the merger. According to the Washington Post, critics have raised concerns about C&S’s “lack of experience handling a large fleet of stores," but both Kroger and Albertsons say they agreed to provide additional corporate and office infrastructure to help alleviate those issues.
Illinois is one of eight states that signed on as party to a lawsuit filed by the Federal Trade Commission seeking to block the merger, citing alleged violations of federal antitrust law. The suit alleges the merger would eliminate competition and lead to higher prices.
A court hearing is scheduled in Oregon on Aug. 26.
