Albertsons lifts land use restriction in Washington

Albertsons has discontinued land use restrictions that led to the creation of a food desert in a low-income neighborhood in Bellingham, Wash., following a state investigation, according to the Washington attorney general. 

AG Bob Ferguson announced on Tuesday that Albertsons recently removed the 2018 restriction that prevented another grocery store from opening at a shuttered Albertsons location in Bellingham’s Birchwood neighborhood. 

An Albertsons spokesperson could not immediately be reached for comment. 

The press release from Ferguson’s office noted that the city of Bellingham banned property restrictions related to grocery stores in response to Albertsons land use restriction, but could not apply the ordinance retroactively. 

“The property has been sold twice since Albertsons closed its store, but the restrictions imposed by Albertsons still barred a grocery store from moving into the development through 2038, leaving thousands of residents without a full-service supermarket within reasonable walking distance,” the AG’s office noted. 

The restriction prevented competition in the area, requiring shoppers to travel to other stores a few miles away. 

Ferguson said in the press release that his office launched an investigation to determine whether such restrictions violate Washington antitrust laws. In addition to removing the restriction, the AG’s office said Albertsons will pay $25,000 to cover the cost of the investigation. 

Related:Washington state lawyers up on Kroger, Albertsons merger

“Access to fresh groceries is essential for every neighborhood,” Ferguson said in the press release. “In a neighborhood like Birchwood, many residents may have less access to transportation, or may be elderly or disabled. Albertsons forced the residents of Birchwood to walk farther for groceries so it could reduce competition for its own grocery store nearby. My legal team will continue to stand up to antitrust violations that create food deserts that harm Washington families.”

Ferguson noted that the restriction was established in 1982, but Albertsons left the location in 2016 after it purchased a nearby Haggen grocery store. 

The grocer sold the location in 2018, but limited the amount of food that could be sold by the new owner. It also established another agreement with the buyer that prevented them from amending the 1982 agreement. 

The location was sold again in 2021, but the restriction was kept in place. 

Ferguson said the investigation into land use restriction preceded the proposed $24.6 billion Kroger, Albertsons merger. 

The AG’s office has sued to block that merger and noted in its recent press release that the merger “will severely limit shopping options for consumers and eliminate vital competition that keeps grocery prices low.”

Related:FTC files lawsuit to stop Kroger, Albertsons merger

Ferguson also said that the proposal by Kroger and Albertsons to attempt “to mitigate the impacts of their merger, which includes selling off more than 100 stores in Washington, does not change the fact that Kroger would still enjoy a near-monopoly in many markets in the state.”

“In addition, the plan to sell the stores to a company that is primarily a wholesale supplier could set up many of the divested supermarkets to fail, endangering Washington jobs and further diminishing choices for Washington shoppers,” Ferguson said.