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Safeway closing more locations as Albertsons reopens its doors following the unsuccessful merger

Aug 16, 2026·3 min read

of Kroger.

Following the collapse of its proposed$ 24 billion acquisition with Kroger, Safeway will shut down more locations as its parent company Albertsons Businesses reviews its financial footprint.

While the Kroger exchange was pending, Albertsons claimed to have slowed its “portfolio marketing” efforts before starting to evaluate its store network after the deal collapsed. In order to make what Albertsons described as the hard decision to close some locations, the company has begun the process of opening stores where it anticipates long-term desire.

According to Albertsons&rsquo’s most recent monthly filing, the company closed 35 shops in fiscal 2025, more than triple the number it did the previous year. It had 2, 244 sites spread across 35 states and Washington, D.C. at the end of the fiscal year that it had opened nine retailers during governmental 2025.

The results of those closures were tangible. Sales from governmental 2025 decreased by$ 63.4 million, after closing the doors, and costs associated with surplus qualities increased by$ 45.9 million from$ 15.9 million in the first year.

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Woolworths continued to make investments in other divisions of its chain. In fiscal 2025, the business completed 94 renovations and opened nine new locations as part of an estimated$ 1.83 billion in cash expenses, which also included investments in digital and technological systems.

As of February 28, 2026, Albertsons had nearly 280, 000 employees under its 280, 000 flags, including Safeway, Vons, Jewel-Osco, ACME, Shaw&rsquo, s and Tom Thumb.

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A complete list of prepared Safeway closures was not provided by the company to USA Today. The outlet reported that Safeway areas in Hayward, California, 2220 N. Coast Highway in Newport, Oregon, and 1601 Maryland Ave. in Washington, D.C., have all since shut down in 2026.

According to USA Today, Albertsons said it is attempting to employ as many of the damaged people as possible.

The business review comes after Albertsons ‘ planned merger with Kroger, which was announced in 2022 and would have resulted in one of the nation’s largest food companies.

The$ 24 billion transaction was brought in by the Federal Trade Commission, contending that it would result in higher food prices and less competition for the workers who work there.

The FTC&rsquo’s ask for a tentative injunction blocking the merger was granted on December 10, 2024 by the U.S. District Court for the District of Oregon. Nine state attorneys general were present when the FTC brought the issue.

Kroger and Albertsons filed a lawsuit after the proposed bargain was rejected.

Kroger after filed assertions in Delaware alleging that Albertsons owed the payment and that it had violated the regulations. Kroger’s bill has been challenged by Woolworths.

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Woolworths refused to respond to FOX Business’s request for comment on the cutbacks right away.

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