Albertsons trims Safeway footprint after FTC blocks Kroger merger

Albertsons Companies announced further Safeway store closures as part of a broader footprint reassessment triggered by the collapse of its $24.6 billion merger with Kroger, which the Federal Trade Commission successfully blocked. The chain halted portfolio-optimization activities while the deal was pending, then resumed evaluating locations, leading to closures in Hayward, California; Newport, Oregon; and Washington, D.C., among others.

Fiscal 2025 saw 35 store shutdowns—more than triple the prior year—offset by nine openings, leaving 2,244 stores in 35 states and the District of Columbia. Net closures cut sales by $63.4 million and raised related costs to $45.1 million. Albertsons continued to pour roughly $1.83 billion into remodels, new sites and digital platforms, completing 94 remodels.

The company is working to place displaced employees in other stores. The merger’s demise also sparked legal battles over a $600 million termination fee and counterclaims by Kroger.