Albertsons shuts more stores across the US

Hundreds of grocery workers are losing their jobs as Albertsons shuts more stores across the US. The 86-year-old supermarket giant closed 20 locations in Texas, California and Washington, DC last year - and now plans to axe even more locations. founded in Boise, Idaho, The move comes just months after its blockbuster $24.6 billion merger with Kroger collapsed in court. Albertson's - founded in Boise, Idaho - operates over 2,200 stores across 35 states under banners including Safeway, Vons and Pavilions.

Two Albertsons stores in North Texas are set to close by the end of April, cutting 138 jobs. In Washington, DC, a Safeway store will shut in May - putting another 87 workers out of work. Southern California will lose 135 jobs as Vons stores in Escondido and Redlands close down in April. The closure of an Albertsons near Riverside in March left a further 75 people unemployed, and a Safeway that closed in Northern California earlier this year axed another 76 jobs.

Industry experts say the wave of store closures is the bitter aftermath of the failed Kroger mega-merger - a deal Albertsons had pinned its hopes on to bulk up and battle rivals with lower prices . Instead, the supermarket giant is tightening its belt, slashing costs and doubling down on high-tech solutions like automation and artificial intelligence, as online shopping surges - often meaning fewer staff on the shop floor. Investor confidence has also taken a hit, with Albertsons’ stock sliding over the past year.

And the fallout doesn’t stop there. The courtroom drama that torpedoed the merger is far from over, with California and a group of states now demanding more than $10 million to cover the costs of stopping the deal. Regulators had warned the tie-up would stifle competition and send grocery prices soaring - concerns that were ultimately upheld by a federal judge in 2024, who blocked what would have been the biggest supermarket merger in US history. Between them, Kroger and Albertsons splashed out a staggering $1.5 billion chasing the ill-fated deal - a sign of just how high the stakes had become.

Now going it alone, Albertsons is scrambling to stay competitive, reshaping its stores and workforce as it battles changing shopping habits and relentless pressure on profits. Albertsons' struggles come as other supermarkets thrive . Budget food shop Aldi now operates more than 2,600 US stores and is aiming to reach nearly 3,200 by 2028 - one of the most aggressive expansion plans in American grocery retail, and enough to make it the fastest-growing national chain.

The rise of Aldi - alongside rival German discounter Lidl and value favorite Trader Joe's, which operate similar private-label-heavy models - is squeezing traditional grocers such as Kroger and Albertsons. Meanwhile, Walmart wins on selection, national brands, bulk buying and its one-stop-shop appeal. Amazon, which is rapidly expanding its grocery ambitions online and through Whole Foods, which it bought in 2017, is also emerging as a major threat to traditional stores.