With Merger Case Ongoing, Safeway’s Future in Colorado is Unclear
One of the biggest ongoing stories in Colorado this year has been the state’s attempt to block the Kroger and Albertsons merger.
Back in February, it was announced that Kroger, which owns King Soopers, and Albertsons, who owns Safeway, would be merging into one entity.
However, Colorado’s Attorney General, Phil Weiser, filed a lawsuit against the two grocery store giants, stating that this goes against antitrust laws.
One major concern, for example, is the idea that since two of the largest grocery store companies in Colorado merge, there will be much less competition.
Stores compete for consumer dollars by having better prices, and these two stores becoming one entity would mean they could charge higher at both places without losing business.
Even more recently, a bombshell dropped when the Senior Director for Pricing at Kroger, Andy Groff, admitted at an antitrust trial that the company had purposely raised the prices of eggs and milk above inflation levels.
Obviously, this caused a major public outcry. Many others, however, could see that this has been plainly obvious for the insane prices people have had to deal with.
Within this saga, the Colorado trial has begun, and it would seem a new wrinkle has been added to the mix.
If Merger Goes Through, Safeways in Colorado Will No Longer Be Owned by Albertsons
As the trial rolls along in the Kroger and Albertsons antitrust case, it is clear that there could be some major changes coming to Safeway if the merger is successful.
Albertsons currently owns all 103 Safeway locations in the state of Colorado.
However, if the merger happens, Albertsons will simply become a part of Kroger, which will only have control of 14 stores in the state.
According to the Colorado Sun, the remaining 89 locations will shift hands to C&S Wholesale Grocer.
If C&S takes control of these stores, they will still be able to have the Safeway branding for at least three more years.
However, it will be difficult for people to distinguish between the Safeways owned by King Soopers and C&S.
Will Piggly Wiggly Take Safeway’s Place in Colorado?
C&S Wholesale Grocers are known for two distinct brands. One of them is Grand Union, which has become a small chain in New York and Vermont.
However, the other one is definitely more recognizable: Piggly Wiggly.
If you’ve never heard of it before, it’s a major grocery store chain with over 500 locations in the South and Midwest.
Since C&S would only get three years with the Safeway branding, many have since theorized all 89 stores could be rebranded to Piggly Wigglys.
The reason they cannot take the Safeway name specifically is because while Kroger is likely to hand over almost all Safeway stores in Colorado, they are still going to take control of the brand throughout the United States.
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