Megamerger: Kroger + Albertson’s by the Numbers



The mega-merger between Kroger and Albertson’s was announced on Oct. 14. The agreement combines the second and fourth-largest food chains in the U.S.

Kroger and Albertsons operate nearly 5,000 stores, 66 distribution centers, and 52 manufacturing plants. The $24.6 billion deal will improve efficiency and expand service across many areas of Kroger’s business, from private label development to retail media.

Kroger CEO Rodney McMullen said the merger would offer a more personalized experience for shoppers, and Albertsons’ technology and e-commerce expertise will accelerate omnichannel success.

“To achieve success in this integration, we will focus on combining each company’s strengths while maintaining and enhancing both sets of distinctive banners,” he said.

Let’s take a look at what this merger looks like by the numbers:

BY THE NUMBERS

  • 4,996 - Retail stores

  • 66 - Distribution centers,

  • 52 - Manufacturing plants,

  • 3,972 - Pharmacies

  • 2,015 - Fuel centers

  • 48 - Kroger will have a presence in 48 states and the District of Columbia.

  • 710,000 - The number of associates the two companies employ.

  • 85 million - The number of households Albertsons and Kroger currently serve

  • 100 to 375 - The number of stores that Kroger and Albertsons expect to divest as part of the agreement.

  • 13% - Estimates indicate that Kroger has an 8% market share in grocery retail, and Albertsons has a 5% share. In comparison, Walmart accounts for 25% of the market.

  • $1,000,000 - Kroger will invest $1 billion to increase worker pay and benefits.

  • $1.3 billion - The amount Kroger will invest in the Albertsons chain to “enhance the customer experience.”

  • 34,000 - The total number of private label products that Kroger and Albertsons offer.

Arun Sundaram, an equity analyst with CFRA Research, wrote.“From Albertsons’ point of view, Kroger’s superior expertise in private label development, its advanced e-commerce operations, and its customer insights program are all major advantages that can help the group’s various banners.”


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