Dozens of Chicago area Mariano's, Jewel-Osco stores to be sold in supermarket merger talks

CHICAGO – Nearly three-dozen Mariano’s and Jewel-Osco stores in the Chicago area could be sold as part of a proposed merger between supermarket chains Kroger and Albertsons.

As part of a divestiture plan, the companies announced Tuesday they have now identified 579 stores that would be sold in markets where they overlap to C&S Wholesale Grocers, a New Hampshire grocery supplier and operator, in an effort to quell the federal government’s concerns about the proposed merger.

In April, Kroger and Albertsons announced an updated plan to sell 579 stores for $2.9 billion to C&S after the U.S. Federal Trade Commission deemed their initial plan of 413 stores “inadequate”. The FTC said it would give C&S a hodgepodge of unconnected stores and brands, leaving it ill-equipped to compete with a combined Kroger and Albertsons.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” C&S CEO Eric Winn said in a statement.

The majority of the stores in the Chicago area that are impacted by the updated plan carry the Mariano’s banner, while four Jewel-Osco locations will also be included. Those stores include:

Jewel-Osco locations:

• 12001 S Pulaski Rd, Alsip

• 87 W 87th St, Chicago

• 1537 N Larkin Ave, Joliet

• 12803 S Harlem Ave, Palos Heights

Mariano’s locations:

• 802 E Northwest Hwy, Arlington Heights

• 144 S Gary Ave, Bloomingdale

• 3350 N Western Ave, Chicago

• 5353 N Elston Ave, Chicago

• 1800 W Lawrence Ave, Chicago

• 5201 N Sheridan Rd, Chicago

• 1500 N Clybourn Ave Ste 104, Chicago

• 3030 N Broadway Ste 100, Chicago

• 3857 S Dr. Martin Luther King Jr. Dr, Chicago

• 105 Northwest Hwy, Crystal Lake

• 2999 Waukegan Rd, Deerfield

• 10 E Golf Rd, Des Plaines

• 678 N York St, Elmhurst

• 21001 S LaGrange Rd, Frankfort

• 6655 Grand Ave, Gurnee

• 1350 E Route 22, Lake Zurich

• 345 W Roosevelt Ave, Lombard

• 1300 S Naper Blvd, Naperville

• 784 Skokie Blvd, Northbrook

• 11000 S Cicero Ave, Oak Lawn

• 9504 142nd St, Orland Park

• 545 N Hicks Rd, Palatine

• 1900 S Cumberland Ave, Park Ridge

• 950 Brook Forest Ave, Shorewood

• 3358 W Touhy Ave, Skokie

• 1720 N Milwaukee Ave, Vernon Hills

• 3020 Wolf Rd, Westchester

• 4700 Gilbert Ave, Western Springs

• 150 W 63rd St, Westmont

• 625 S Main St, Wheaton

• 1822 Willow Rd, Winnetka

It’s unclear if the new plan will satisfy regulators. In February, the U.S. Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants, saying the lack of competition would lead to higher grocery prices and lower wages for workers.

Under the updated plan, Kroger would sell its Haggen banner to C&S. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores. Under the proposal, C&S would keep all of the stores open and honor any labor agreements.

Kroger and Albertsons announced their planned merger in October 2022. The companies say it’s necessary so they can better compete with Walmart, Amazon and other big rivals.

An Albertsons Cos. spokesperson released the following statement:

“C&S is a well-capitalized industry leader in wholesale grocery supply—currently serving more than 7,500 independent supermarkets, retail chain stores, and military bases—with a strong track record as a successful grocery retailer. Their purchase of these assets—along with the associates who will transition to C&S post-close—will enable their company to be one of the leading grocery retailers in the United States, providing communities and consumers with even more choices and access to fresh, affordable food options.

Both C&S and Kroger have each committed that no frontline workers will lose their jobs and no stores will close as a result of the merger. Furthermore, associates will also continue to receive the competitive wages and benefits that they do today, maintaining their pay, health, and wellness plans, and all collective bargaining agreements where they are in place.”