Safeway store closures: Why Albertsons is closing more locations after Kroger deal collapse
Safeway Store Closures After Kroger Deal Collapse
Bharatmorningnews.com – Nearly two years after the $24.6 billion Kroger–Albertsons acquisition was killed in court, Albertsons Companies is reshaping its grocery footprint across the United States. On August 14, the parent company confirmed that it is continuously reassessing which locations remain in the network and which will be retired. The Safeway store closures now unfolding are one visible thread of that broader post-merger reorganization, but they sit alongside simultaneous openings in high-demand markets rather than representing a blanket shutdown program.
How the Merger Fell Apart
In October 2022, Kroger announced its intent to acquire Albertsons in a deal valued at $24.6 billion. Both companies pitched the combination as a way to build a grocery powerhouse better positioned against discount competitors and online grocers. The Federal Trade Commission moved quickly to contest the transaction, arguing that merging two of the largest supermarket chains would reduce competition and push shelf prices higher for everyday shoppers.
The legal fight dragged on for more than two years before a federal court blocked the merger outright. Separately, a King County judge in Washington state challenged the deal in December 2024, adding another layer of judicial opposition. Those combined defeats terminated the takeover and ignited a public dispute between Kroger and Albertsons over which side bore responsibility for the collapse. For Albertsons, the end result was clear: it had to make standalone decisions about its store base without the assumed scale advantages the merger was supposed to deliver.
"The company deliberately paused major portfolio changes while Kroger merger negotiations were underway. Once the deal died, independent decision-making resumed." — USA Today reporting, August 14
During the negotiation window, Albertsons had frozen most structural changes to its network so that neither side could be accused of weakening the combined entity before regulators reviewed it. With the deal now dead, that freeze lifted. Management returned to evaluating geographic placement, individual location performance metrics, and where stronger growth opportunities exist outside the current footprint.
What Shoppers and Employees Should Know
The restructuring is targeted rather than uniform. Albertsons has begun opening new stores in markets with robust demand while phasing out locations that no longer fit the updated business model. The Safeway store closures therefore represent one component of a wider repositioning effort, not an across-the-board liquidation of the banner.
When pressed on August 14 for a complete list of stores already shuttered or slated for closure, neither Albertsons nor Safeway furnished a comprehensive inventory. Reporting from Inc. Magazine and The Independent identified three Safeway locations that have closed in 2026, though that figure almost certainly understates the full impact given the absence of a public master list. Because the company stated it continues reviewing its network, additional closures remain possible as long-term viability decisions are finalized over coming months.
On the workforce side, Albertsons told USA Today on August 14 that it is actively working to place affected associates at other locations within its portfolio. Workers at stores being wound down may receive opportunities to transfer to a nearby Albertsons-owned store rather than face immediate termination, though the company did not specify timelines or guarantee outcomes for every employee.
Frequently Asked Questions
Will my local Safeway close? Albertsons has not published a definitive closure list. The company says it is "continuously reassessing" its store base, so any given location's status could change. Check the Albertsons corporate communications page or call your nearest store manager for the most current information.
Why are closures happening now? With the Kroger merger blocked by federal and state courts, Albertsons lost the scale rationale that had justified keeping marginal locations open during negotiations. Standalone economics now drive which sites stay and which go.
What happens to employees at closing stores? The company stated it is working to place affected workers at other portfolio locations. Transfers are being offered where feasible, but no blanket guarantee was made public as of August 14.
Are new stores still opening? Yes. Albertsons confirmed simultaneous openings in high-demand markets alongside the closures, indicating a selective repositioning strategy rather than pure contraction.