If the proposed merger goes forward this Vons would be sold to C&S.
As the merger of Kroger and Albertsons seeks approval from federal antitrust regulators, many residents in Pacific Palisades worry about losing the Vons grocery store located at Sunset and Pacific Coast Highway.
A group of residents having coffee at Estate/Flour on a recent morning expressed satisfaction with Vons and didn’t want that grocery store to go away.
“They have good produce and a good deli,” one said.
Another added, “They have nice liquor, selection, too, and there’s a Starbucks, there.”
Vons is one of four grocery stores in Pacific Palisades that also includes Ralphs, Erewhon and Gelson’s.
Kroger, which owns Ralphs and Food 4 Less, and Albertsons, which owns Safeway, Vons and Pavilions, have sought to merge.
The combined company would own nearly 5,000 stores. The deal was first announced in October 2022. The two food chains have said they need to combine to better compete with retail giant Walmart. The deal, if approved, would put Kroger as the second-largest player in the U.S. grocery market behind Walmart.
The Federal Trade Commission sued to block the acquisition earlier this year, arguing it could eliminate competition, drive prices higher and reduce choices for shoppers.
To offset that fear, the companies are now selling 579 stores to C&S Wholesale Grocers, a New Hampshire-based company that owns the Piggy Wiggly and Grand Union brands, as well as giving it access to Albertsons Signature and O Organics private label brands.
That deal includes the sale of 63 stores in California to C&S and on July 9, Kroeger said C&S would continue operating stores, honor existing collective bargaining agreement and avoid layoffs.
Two nearby stores would be among those sold under the agreement: Vons at 17380 Sunset Boulevard and Pavilions at 29211 Heathercliff Road in Malibu.
Steven Shemesh, RBC Capital Markets analyst, said that one of the primary arguments against the original sales package was that C&S does not have meaningful operational experience and that they have a history of flipping retail assets.
The suit is scheduled to go to trial at the end of August.
Maybe if the C&S Piggly Wiggly does not make it, that current Vons’ site would be a great location for a Trader Joe’s.
Being a Trader Joe’s devotee, I learned that one aspect of their success is a business model that will not allow a store to be more than a handful of miles from a fwy. This is how their pricing can stay very competitive. This location would be ideal AND with a normal parking lot . . . Smile
Piggly Wiggly! A blast from the past for me, I grew up in the south and my mother did all the grocery shopping at the Piggly Wiggly.
However, I like the idea of a Trader Joe’s in that location much better!
Sigh, Much as I like TJ’s, we have enough upscale stores here. Vons gives folks the ability to stay within a budget while enjoying a wide variety of wholesome meals and more. We are an upscale community with a large swath of folks who are not making upscale income. In addition, it is ridiculous to believe that removing the main competition will make prices go down. It’s never been so and it won’t be so now, either.
Stop the sale !