What impact would the Kroger, Albertsons merger have on gas stations?

Kroger and Albertsons are two of the largest fueling station providers in the country, operating roughly 1,408 U.S. fueling stations, but about 10% of those stations would be divested to C&S Wholesale Grocers if the $24.6 billion mega-merger of the two grocery chains is approved later this year.

That’s according to a recent article in Dow Jones Newswires, which looks at an analysis by the Dow Jones information service OPIS (Oil Price Information Service).

The report revealed that most of those gas stations are located at Albertsons-owned Safeway stores, about 20% of which would be divested if the deal goes through. 

The OPIS analysis also noted that Safeway is the nation’s 34th largest provider of fuel in terms of visit count, and the average price of gas at those locations is 21 cents below the market average. 

Overall, about 147 gas stations would be divested under the current proposal across 13 of the 18 states (and the District of Columbia) that would be affected by the grocery merger. 

The states that would be impacted include Washington with 41 fueling stations, Colorado (38), Arizona (27), Texas (13), both Alaska and Oregon (8), Illinois (5), California (2), and one each in Delaware, Idaho, Montana, Nevada, and New Mexico. 

Safeway would lose 108 of its 289 stations under the deal, according to the report. Other banners that would see gas stations divested include QFC (11), Tom Thumb (9), Carrs (5), Mariano's (5), Market Street (3), Vons (3), Albertsons (1), Harris Teeter (1) and Randalls (1), according to the OPIS analysis.

Related:INTERACTIVE MAP: Kroger, Albertsons divestiture map reveals clusters of stores

A dozen of the Safeway locations would be rebranded under the deal, the report noted. 

C&S Wholesale Grocers has operated fueling stations since 1999 and now operates 12 Piggly Wiggly fuel centers in seven states, according to the OPIS analysis.

Kroger released a statement concerning the gas station divestitures, noting that C&S is positioned to successfully operate the divested stations due to their "strong operational focus" and "experienced management team and financial resources."

"The expanded divestiture package will further ensure C&S can continue serving and supporting communities for years to come. The divestiture plan will ensure zero stores or fuel centers will close as a result of the merger, and all frontline associates will remain employed,” according to Kroger.

*This article was updated on 7/25/2024 to include a statement from Kroger.

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If the Kroger, Albertsons merger is approved almost 150 fuel outlets could be divested. This detail was not highlighted in the store divestiture plan. Do you think any other details about the merger will emerge from the fine print in the coming months? Comment below or reach out to the SN editorial team at [email protected].

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