How the Kroger-Albertson, C&S Wholesale merger could impact over 15 stores in Southern Colorado

EL PASO COUNTY, Colo. (KRDO) - The interest, and implications of the $25 billion dollar merger between Kroger and Albertsons have ramped up, as the companies have finally released the official list of the hundreds of stores that would be sold off to a separate company, C&S Wholesalers.

The list included 91 stores in the state of Colorado, which was the second largest number of stores within a single state, trailing only behind Washington with over 130.

You can view the entire document here.

Eleven of the stores in the Centennial State are located Colorado Springs, along with two locations in Pueblo, and one each, in Monument, Woodland Park and Cañon City. Those specific addresses go as follows:

• Safeway — 3275 W Colorado Ave, Colorado Springs
• Safeway — 2890 N Powers Blvd, Colorado Springs
• Safeway — 6520 S Academy Blvd, Colorado Springs
• Safeway — 1425 S Murray Blvd, Colorado Springs
• Safeway — 1920 S Nevada Ave, Colorado Springs
• Safeway — 840 Village Center Dr, Colorado Springs
• Safeway — 7055 Austin Bluffs Pkwy, Colorado Springs
• Safeway — 2210 Wahsatch, Colorado Springs
  Safeway — 5060 N Academy Blvd, Colorado Springs
• Safeway — 8750 N Union Blvd, Colorado Springs
• Safeway — 4405 Centennial Blvd, Colorado Springs
• Safeway — 1101 E US Hwy 24, Woodland Park
• Safeway — 624 Hwy 105, Monument
• Albertsons — 1601 Hwy 50 W, Pueblo
• Safeway — 1231 S Prairie Ave, Pueblo

Union representatives say they were furious to see the actual list of specific stores be released so late into the near 20 months that the deal has been in talks for.

"We think the workers deserve to know if their store was going to be sold to and they refused to provide that list to us." explained Kim Cordova, the President of UFCW Local 7, which represents upwards of 17,000 grocery store workers in Colorado.

She says this deal is a monopoly, in an industry that's quite literally a lifeline for survival for residents.

"We're going to have a giant company that's going to have so much control over the essential goods that our communities need." said Cordova.

She says the Unions concerns are the tight grasp that the mega-ownership will have over food, gas, and pharmacy prices, as well as employee wages, and pension plans.

"You're not going to have any other choice but to shop at those grocery stores. They are a major player in this market." said Cordova.

She adds that those worries are all amplified by their belief that C&S Wholesalers is not a competent partner in the merger.

"They have one pharmacy store out of all of their their businesses. They're wholesales, so they are not that experienced, in our opinion, in the grocery business." said Cordova. "And pharmacy is a really important deal in the grocery business, they're a gateway to sales." she explained.

Local economists say those concerns from Cordova and the thousands of retail employees she represents, are valid when it comes to mergers that threaten a monopoly.

"Economists don't usually like this sort of thing, and it's for good reason." said Tatiana Bailey, who runs Data-Driven Economic Strategies in the Pikes Peak region.

"Once you start having these mega companies that are, you know, setting supply, setting prices and so forth, you know, there's the high probability, quite honestly, that consumers are going to start paying more." she added later on, stating that since 2020, grocery prices have already gone up 26%.

Residents in Colorado Springs who both shop at Safeway and also go there for Insta Cart and Door Dash deliveries for work, like Rose Roncketti, say the possibility of these stores is worrisome.

"I do know a lot of people that work [at] Safeway [and] have been here for many, many years. So it's really going to effect them." said Rose Roncketti, after loading grocery bags into her trunk on Tuesday evening at the Safeway off of South Murray Boulevard.

It's the potential for closures, which according to Bailey has crept from a number around 400, to now nearly 600 throughout the course of the merger discussions, would impact communities who rely on these grocery stores for so much.

"Regions that are already food deserts could create, you know, even bigger problems for food access  in urban centers, in rural areas and so forth."

In response to questions from KRDO13 on Tuesday, C&S Wholesale wrote in an email statement:

"As part of C&S’s definitive agreement with The Kroger Co. and Albertsons Companies Inc. companies, the following distribution centers and store locations are designated for acquisition by C&S. 1918 Winter Street Partners, a subsidiary of C&S Wholesale Grocers, LLC will operate these stores. The new agreement increased distribution capacity, expanded transition services agreements and included a dairy facility. The transaction is not final and C&S’s agreement is subject to Kroger and Albertsons resolving the pending cases in court. 

We are also very excited to welcome thousands of highly skilled grocery retail, store and distribution team members from Kroger and Albertsons who are currently responsible for these supermarkets. Their knowledge, along with C&S’s wholesale and supply expertise, will ensure these stores continue to successfully serve their communities. C&S will recognize the union workforce and maintain all collective bargaining agreements. We are committed to retaining frontline employees and further investing in growth. 

C&S is well prepared to successfully operate these stores for many generations to come. We have an experienced management team with an extensive background in food retail and distribution, and the financial strength to continue investing in growth. Our retail transformation furthers C&S’s ability to maintain our legacy of braggingly happy customers."

"The transaction is not final and C&S’s agreement is subject to Kroger and Albertsons resolving the pending cases in court. Once it closes, more information will be available."

-Spokesperson for C&S Wholesalers

Those cases referenced at the end of the statement are with the Federal Trade Commission, the Colorado Attorney General's office, and the State of Washington, which will all begin in court in a few weeks.