In October 2022, Kroger announced its intent to merge with Albertsons. The companies operate almost 5,000 stores nationwide. The proposed merger is currently being reviewed by the state of Nevada, several other states and the federal government.

On Sept. 8, Kroger announced it would divest 413 stores across the country to C&S Wholesale Grocers of Keene, New Hampshire, upon close of the merger and may require them to purchase 237 more stores to obtain government clearance. This includes divesting 15 undisclosed locations across Nevada.

What does this mean for our state?

In Nevada, there are 46 Smith’s, 35 Albertsons, nine Vons and seven Safeway grocery stores. After the merger, Kroger would operate 97 stores across the state before any of the store divestitures.

In the Las Vegas area, there are 36 Smith’s, 32 Albertsons and nine Vons. Kroger would operate 77 stores in the Las Vegas area before any of the divestitures.

Nevada Attorney General Aaron Ford has been hosting listening sessions to get people’s opinions on the merger and its potential impacts on Nevada. They are currently scheduled through Oct. 12. People can also submit answers to a short seven-question survey to give their input. I’ve attended two sessions, one of which the attorney general and Federal Trade Commission Chair Linda Khan attended. Some concerns raised at the sessions regarded prices going up with less competition and job loss. 

Nevada has been through a grocery merger like this before when Albertsons purchased Vons and Safeway in 2015. In the Las Vegas region, they sold seven stores to the unknown-to-the-area Haggen to appease regulators. In less than six months, Haggen filed for bankruptcy and closed those stores. Albertsons bought back three of them, the same ones that were sold for antitrust reasons, while the other four remained closed. One of the closed stores in Boca Park in the Summerlin area still sits vacant after eight years. The companies sued each other. In 2016, Albertsons bought the entire remaining Haggen chain. That was the end of that saga.

For its part, C&S has a history dating back to 2000 of buying grocery stores and selling or closing them. At minimum, they’ve shown a mixed commitment to running grocery stores rather than just supplying them, which is their core business. More recently, they’ve purchased 12 Tops supermarkets in New York through another merger divestiture rebranding most of them to the already familiar Grand Union. They also purchased Piggly Wiggly stores in the Midwest and Southeast keeping their familiar names. Both chains remain open.

As part of its deal with Kroger, C&S would have exclusive use of the Albertsons name in California, Arizona, Colorado and Wyoming, increasing those stores’ chances to survive and thrive. But not the stores it gets in Nevada. C&S would also be purchasing the QFC banner that operates in Washington and Oregon, increasing the likelihood of success of those stores in those states too.

There remains questions and uncertainty about this merger’s impact on Nevada.

Locations: Why is C&S only purchasing 15 stores across Nevada of the 97 that will become part of Kroger? In the Las Vegas area, Kroger will have 77 stores, and it’s very likely that less than 15 in the area will be sold to C&S. That is likely setting them up to fail (see: Haggen) as they’ll have such a small presence. This merger should be looked at through overall market concentration and not just individual store locations when deciding the number of stores to sell and what provides a sustainable and durable option marketwide and statewide for Nevadans.

Name: Why is C&S not being given the exclusive licensing rights to the familiar Albertsons (or Vons) name in Nevada? A more familiar name will increase the chance of the stores’ success, which includes jobs and continued competition, rather than Nevada being what seems like an afterthought in this divestiture. Are they going to name them Piggly Wiggly? How would that be received? Or will it be QFC? Or something else? In Las Vegas, I doubt Kroger is going to keep all three names — Smith’s, Albertsons and Vons — and put out a weekly ad with three names across the front page. They’ll likely dispense with one of them.

Remember that the unknown Haggen closed. These C&S stores could suffer a similar fate. Keep in mind it’s likely very few people had on their wish list for Smith’s and Albertsons/Vons/Safeway to merge and become one company. The urge to compare the divested stores will come naturally since they didn’t ask for it. They’re not going to get a second chance at a first impression.

Weekly ads: Right now, in Las Vegas, Smith’s and Albertsons/Vons each publishes and mails a weekly ad. No other store does that where I live. For about the past year, Albertsons has had excellent deals on its front page and arguably most have been better than Smith’s. This has helped bring the price of groceries down and reminded me of what will be gone after the merger since there will be just one weekly ad. That means groceries will likely cost more. There were concerns about this at the attorney general’s listening sessions. These weekly deals often cost less than Walmart and the membership fee-based Costco. 

Personalized/digital coupons: Additionally, the personalized deals and digital coupons that customers get for Albertsons/Vons/Safeway on their apps and websites will go away because there will just be one unified Kroger experience of deals and digital coupons regardless of the names of their Nevada stores. That also means groceries will likely cost more.

Military/senior discounts: The 10 percent military and senior discounts that Albertsons/Vons offer once a month will go away because Smith’s offers no such discounts.

Jobs: Can enforceable commitments be put into the deal instead of just brief mention? I heard deep and sincere concern from Albertsons’ and Vons’ employees at the listening sessions. One employee had more than 30 years’ tenure while another had 16 years’ tenure with Albertsons. Keep in mind these workers shop there, too, and voiced the same pricing concerns mentioned above.

This ultimately is about people maintaining their livelihoods. That includes the workers and shoppers who rely on price competition, overall affordability and choice in their area whether they shop there or not. This doesn’t come with promises that sound good, such as those being made with this merger, and haven’t always been followed-through with other mergers, but enforceable commitments.

When the market becomes so concentrated —as it will with this merger — it’s hard to ever rebuild that competition and choice (or even half of it) should any aspects of this merger fail. Food is not an option or something people can stop buying. Nevada residents, who didn’t ask for less choice, will have no choice but to rely on the impact and any repercussions of this merger. Plan carefully. 

Mark Brandano is a nine-year resident of the Las Vegas area.