Kroger is reportedly in talks to buy Albertsons in a deal that would combine two of the nation's largest grocery chains.
The big picture:
Grocers are dealing with a slew of challenges, including runaway inflation and competition with value chains and online retailers. "Such consolidation would, in theory, improve the economics for both businesses giving them even more buying power than they currently enjoy and providing an opportunity for significant savings in central operations," GlobalData retail analyst Neil Saunders wrote Thursday.By the numbers:
Kroger had about 2,800 supermarkets, distribution warehouses and food production plants as of Jan. 29, including its namesake stores, Harris-Teeter, Fred Meyer and Roundy's Albertsons had 2,276 stores as of Feb. 26, including its namesake brand, Safeway, Jewel-Osco and Acme."There is overlap in the two store estates, particularly in the West, and there will, no doubt, be some closures if a merger goes ahead," Saunders wrote. "However, these could initially be minimal given that a lot of the existing stores have a fairly clearly defined catchment and loyal bases of customers.
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