According to those ever-mysterious “people familiar with the matter,” the northeastern grocery chain Price Chopper is in “advanced talks” with national chain Albertsons in an acquisition deal. The acquisition could still fall through, but it would mean that the closely held grocer could have a new owner after more than 80 years as a mostly family-run company.
The current mega-Albertsons, the country’s second-largest grocery chain, was formed in the 2014 merger of Albertsons and Safeway, making it the parent company of familiar brands like Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, and Carrs.
Reuters reports that the proposed sale price of the chain was $1 billion. If the deal goes through, it would only be the latest in a trend of national mega-chains gobbling up local chains as standalone grocery stores prepare to fight competition from Walmart and potentially from Amazon, as both mega-retailers open online pickup grocery centers, and Amazon makes a big push to expand its grocery business across the country.
Looking at a map of Albertsons subsidiaries and their territories, it’s notable that two states where the company has no business are Price Chopper’s home state of New York and neighboring Connecticut: two states full of Price Chopper stores.
The Northeastern Price Chopper is not connected to the small Midwestern chain of the same name. The larger Price Chopper recently announced an investment of hundreds of millions of dollars in rebranding itself as Market 32, a more upscale brand with more prepared food and less chopping of prices.
by Laura Northrup via Consumerist