How Will North Texas Kroger-Albertsons Merger Impact Grocery Stores in the Area?

Stores in Arlington, McKinney, Dallas, Frisco and more will be impacted by the massive transaction.

July 10, 2024

Dozens of DFW grocery stores are set to be sold to an out-of-state company. Photo by David Clarke on Unsplash

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The possible merger of grocery giants Kroger and Albertsons could be closer to reality with the latest announcement that 28 Texas stores will soon be sold.

Of the 28 Lone Star State Kroger and Albertsons locations set to be sold to New Hampshire-based C&S Wholesalers, 26 are located in North Texas. That number is part of more than 500 stores the two chains plan to unload to make the proposed merger more viable before a court date in August with the Federal Trade Commission (FTC).

The Dallas Morning News reported that C&S does not plan to lay off any workers at the Texas stores it takes over.

In February, the FTC filed a lawsuit against Kroger and Albertsons to prevent the merger, which was announced in October 2022, alleging it would lead to anti-competitive practices.

“[T]he proposed deal will eliminate fierce competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items for millions of Americans,” an FTC press release in February stated. “The loss of competition will also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries.”

Monopolistic concerns were shared by more than just the feds. In March, Lisa Gilbert, the executive vice president of Public Citizen, a nonprofit consumer advocacy organization, told the Observer that two such titans joining together would be less than ideal for consumers in a rather simple equation.

“A merger would leave more grocery shoppers with fewer choices,” she explained.

The number of Texas stores affected by the sale plans is well below the 124 locations in Washington that are to be a part of the transaction. More than 70 grocery stores in Arizona are also included in the sale.

According to a list published in USA Today on Wednesday, a number of local Market Street stores, Tom Thumb stores and Randalls stores, as well as Albertsons locations, will change hands once the sale goes through. Only one Dallas store, the Tom Thumb at 6333 E. Mockingbird Lane, is reported to be a part of the massive transaction.

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Kelly Dearmore is news editor of the Dallas Observer. He’s held the position since November 2022. Since joining the team, Kelly has covered topics such as state and local politics, crime and public safety, education and immigration. A native Texan, Kelly has contributed to other publications including Texas Monthly, Dallas Morning News, Success Magazine and Cowboys & Indians Magazine.

Contact: Kelly Dearmore

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