Aldi and Save Mart likely considered buying divested Kroger, Albertsons stores

Prior to choosing C&S Wholesale Grocers as its divestiture partner in its proposed acquisition of Albertsons, Cincinnati, Ohio-based Kroger considered offers from dozens of other parties, and two of them appear to be Aldi and Save Mart.

Kroger and Albertsons attorneys revealed in a post-hearing brief, filed in the District Court of Oregon on Sept. 27, that 92 parties initially expressed interest in purchasing the divested stores — 72 of those unnamed entities were strategic buyers and 20 were financial buyers.

Ultimately, Kroger and Albertsons decided to go with C&S Wholesale Grocers, the largest wholesale grocery supply company in the U.S., which operates about two dozen physical stores in the U.S. 

Oral arguments in the lawsuit brought by the Federal Trade Commission and nine attorneys general have concluded in the case in Portland, Ore. The state of Washington’s separate antitrust case against the Kroger, Albertsons merger is expected to hear closing statements on Oct. 23, and closing arguments in the Colorado antitrust case are expected on Oct. 24. 

A decision has not yet been announced in the federal case brought by the FTC.

Oral arguments in the Colorado case revealed last week that both German discount grocer Aldi and Modesto, Calif.-based The Save Mart Companies both likely expressed interest in buying the 579 stores that will now go to C&S Wholesale Grocers if the deal is approved, according to a story in The Denver Gazette. 

Spokespeople from Kroger, Aldi, and Save Mart could not immediately be reached for comment.

The newspaper reported that Colorado state attorneys asked why Kroger and Albertsons chose to divest to C&S, considering its inexperience as a retailer. That’s when grocery consultant Roger Davidson, a witness called by the state, revealed that a discount retailer that operates about 2,200 smaller-format stores nationwide also expressed interest. 

The Denver Gazette story also noted that Aldi U.S., one of the fastest growing grocery chains in the country, started 2024 with about 2,200 stores and currently runs about 2,400. 

Aldi is not averse to acquisitions, having purchased Southeastern Grocers’ Winn-Dixie and Harveys Supermarkets — about 400 total locations across five states — in 2023. The discount grocery chain began converting about 50 of the Winn-Dixie locations in August.

The Denver Gazette story also noted that Aldi now operates in 39 states, but Colorado is not one of them. 

After revealing details about the prospective buyer in court, Denver District Court Judge Andrew Luxen, who is overseeing the case, reminded attorneys to be mindful of their descriptions of companies considered in the divestiture package to maintain their anonymity. 

Following Luxen’s warning, Davidson revealed the name of the CEO of another company considered for the divestiture: Shane Sampson, chief executive at The Save Mart Companies, which operates nearly 200 stores in California and Nevada, according to the story. 

Davidson was abruptly dismissed from the stand, after he mentioned Sampson by name and noting that he “has a great reputation in the industry.”