Morro Bay Albertsons sale halted until Colorado judge makes ruling 

The supermarket mega-merger of Kroger and Albertsons was put on pause in late July, delaying the sale of 63 California supermarkets, including the Albertsons in Morro Bay.

The $2.5 billion deal was announced in 2022; however, the merger has faced criticism for creating a "grocery monopoly," and the Federal Trade Commission (FTC) filed a lawsuit in early 2024. According to the FTC, if the deal goes through, Kroger and Albertsons would operate more than 5,000 stores and 4,000 pharmacies in 48 states, making the merger the largest in U.S. history.

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• Photo From Kroger Co's Website
• MEGA-HALTED The fate of the Morro Bay Albertsons ownership awaits a judge's review of the Kroger-Albertsons mega-merger deal.

The merger came to a halt on July 25 when a Colorado judge granted a preliminary injunction after the state attorney general challenged the merger. The judge, Andrew J. Luxen, will review the merger's merit on Sept. 30.

Bloomberg Law reported both corporations agreed to pause the merge until after the judge rules.

If approved, the Morro Bay location will be sold to C&S Wholesale Grocers, a supplier for independent grocery stores, including Piggly Wiggly. If C&S were to buy the Morro Bay Albertsons, the store would remain in operation and under the same name, C&S Vice President of Communications Change Management and Community Relations Laura La Bruno told New Times by email.

The Morro Bay Albertsons, located on Quintana Road, declined to provide a statement when contacted.

In total, C&S would purchase 413 supermarket locations, in addition to the 23 supermarkets and one pharmacy it currently operates. According to a C&S press release, it will receive the exclusive licensing rights to the Albertsons brand name in Arizona, California, Colorado, and Wyoming locations.

The FTC said it was concerned about whether C&S could compete with Kroger and Albertsons.

"C&S would face significant obstacles stitching together the various parts and pieces from Kroger and Albertsons into a functioning business—let alone a successful competitor against a combined Kroger and Albertsons," a press release about the lawsuit read.

Despite its size, La Bruno wrote, "C&S is well-prepared to successfully operate these stores for many generations to come. We have an experienced management team with an extensive background in food retail and distribution, and the financial strength to continue investing in growth."

The FTC lawsuit also claimed the merger would harm consumers and workers, endangering quality of food, prices, and employment benefits.

"In addition to raising grocery prices, the FTC alleges that Kroger's acquisition of Albertsons would also diminish their incentive to compete on quality," the press release read. "Today, Kroger and Albertsons compete to improve their stores in many ways, including offering fresher produce, higher quality products, improved private label offerings, a broader array of in-store services, flexible store and pharmacy hours, and curbside pickup services." Δ