Albertsons closes 100+ stores after failed Kroger merger deal

Albertsons is shutting down more stores across the US after its planned merger with Kroger fell through. The supermarket chain has already closed over 100 locations since late 2024, with further cuts expected this year. The move follows financial pressure and a failed bid to boost competitiveness through consolidation. The closures began after regulators blocked the Kroger merger in late 2024. Albertsons had hoped the deal would improve pricing power and scale, but the rejection left the company struggling. By the end of 2025, 103 stores had shut, including 44 in 2025 alone.

A Safeway in Washington, D.C., will close in May, cutting 87 jobs. Two Vons stores in Escondido and Redlands, California, are set to shut in April, affecting 135 workers. Another Safeway in Northern California closed earlier this year, leaving 76 employees without jobs. In Texas, two Albertsons-owned stores will close by late April, impacting 138 staff. A Riverside, California, location shut in March, eliminating 75 positions. The cuts span multiple states, including Colorado and Maryland. Investors have reacted poorly, with Albertsons' stock falling over the past year. To counter financial strain, the company is now focusing on cost-cutting and technology. Automation and AI investments are being prioritised as digital sales grow.

The store closures mark a shift for Albertsons as it adjusts to life without the Kroger deal. Over 100 locations have already closed, with more planned in the coming months. The company's focus on automation and efficiency may reshape its operations moving forward.