Albertsons is closing additional stores and cutting jobs nationwide as it works to stabilize operations following the collapse of its $24.6 billion merger with Kroger, intensifying pressure on the grocery chain.
The Boise, Idaho-based company — which operates banners including Safeway, Vons and Pavilions — has announced a new round of closures in recent weeks as it pivots to cost-cutting and operational changes.
The company has closed roughly 20 stores in 2025, underscoring mounting pressure as it competes with larger rivals such as Walmart and other low-cost operators.
In Southern California, Vons stores in Escondido and Redlands will close in April, eliminating 135 jobs. An Albertsons store near Riverside, California, shut down in March, cutting 75 workers, while a Safeway in Northern California closed earlier this year, affecting 76 employees.
GROCERY GIANT KROGER TO CLOSE 60 STORES IN NEXT 18 MONTHS
The cuts extend beyond the West Coast. Two Albertsons-owned stores in North Texas are set to close by late April, impacting 138 workers, and a Safeway in Washington, D.C., is slated to shut down in May, eliminating 87 positions.
“We continuously evaluate regional market dynamics and performance of our stores and make changes when needed to drive our business success,” an Albertsons spokesperson told FOX Business. “These store closure decisions were not made lightly and many associates at the impacted locations were placed in positions at other stores.”
Industry analysts say the closures reflect ongoing fallout from the blocked Kroger merger, which Albertsons had framed as key to achieving scale and competing more effectively on pricing.
In response, the company is leaning on cost reductions and technology investments, including automation and artificial intelligence, as digital sales grow — often requiring fewer in-store workers.
“AI is helping us reimagine how customers and associates experience our ecosystem, powering more personalized, intuitive tools that improve how people shop and work,” the spokesperson said. “Our philosophy is that technology should enhance people, and not replace them, as our associates focus more time on serving customers.”
Albertsons is also facing investor skepticism, with its stock down 22% over the past year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ACI | ALBERTSONS COS INC | 17.41 | +0.40 | +2.32% |
Meanwhile, the legal fight that killed the merger is still playing out. California and a coalition of states are seeking more than $10 million to cover the cost of blocking the deal.
Regulators argued the merger would reduce competition and raise grocery prices. A federal judge agreed in 2024, halting what would have been the largest supermarket merger in U.S. history.
Kroger and Albertsons spent roughly $1.5 billion pursuing the deal, underscoring the scale of the failed tie-up.
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Now operating independently, Albertsons is navigating a more competitive grocery landscape while restructuring its footprint and workforce to adjust to shifting consumer demand and margin pressure.
Reuters contributed to this report.
