What Happened to Albertsons and Safeway Store Closures?
Albertsons and Safeway have experienced significant store closures in two distinct phases: first, following their 2015 merger due to antitrust divestitures, which notably impacted the acquiring chain Haggen, and more recently in 2025-2026 as Albertsons reevaluates its store network after the collapse of its proposed merger with Kroger. These closures are part of strategic adjustments to optimize profitability and adapt to market dynamics.
Quick Answer
Albertsons, parent company of Safeway, is actively closing stores across its various banners in 2026, including Safeway, Acme, and Vons locations, as it reevaluates its store network for profitability. This wave of closures follows the December 2024 collapse of its proposed $24.6 billion merger with Kroger, which had temporarily paused such optimization efforts. In fiscal 2025 alone, Albertsons closed 35 stores, and more are slated for 2026, with the company aiming to relocate affected employees where possible.
📊Key Facts
📅Complete Timeline13 events
Albertsons and Safeway Announce Merger
AB Acquisition LLC, owner of Albertsons, announced its intent to acquire all outstanding shares of Safeway Inc. in a $9.2 billion deal.
FTC Mandates 168 Store Divestitures for Merger Approval
The Federal Trade Commission (FTC) approved the Albertsons-Safeway merger on condition that 168 stores be sold to address antitrust concerns in 130 local markets across eight states.
Albertsons and Safeway Complete Merger
AB Acquisition LLC and Safeway Inc. officially completed their proposed merger, forming a combined company with numerous grocery banners.
Haggen Announces Closure of 27 Stores
Haggen Inc., which acquired 146 stores from Albertsons and Safeway, announced it would close 27 of its locations, including 16 in California, due to struggles with its rapid expansion.
Haggen Files for Bankruptcy
Haggen Food & Pharmacy filed for Chapter 11 bankruptcy protection, signaling the failure of its ambitious expansion strategy following the Albertsons-Safeway divestitures.
Albertsons Reacquires 29 Haggen Stores
Albertsons reached an agreement to acquire 29 of Haggen's remaining 'core' stores for $106 million, bringing many of the divested locations back under Albertsons' ownership.
Kroger Announces Plan to Acquire Albertsons
Kroger Co. announced its intention to acquire Albertsons Companies Inc. in a $24.6 billion deal, aiming to create a grocery giant.
Kroger/Albertsons Announce Initial Divestiture Plan
In an effort to secure regulatory approval for their merger, Kroger and Albertsons announced a definitive agreement to sell 413 stores and other assets to C&S Wholesale Grocers.
Kroger/Albertsons Update Divestiture Plan to 579 Stores
To further address antitrust concerns, Kroger and Albertsons amended their divestiture plan, increasing the number of stores to be sold to C&S Wholesale Grocers to 579.
Kroger-Albertsons Merger Blocked by Courts
A federal court and a King County judge in Washington state blocked the proposed Kroger-Albertsons merger on antitrust grounds, leading to its collapse.
Albertsons Closes 35 Stores Post-Merger Collapse
Albertsons closed 35 stores across its banners in fiscal 2025, more than triple the previous year, as it resumed store optimization efforts after the failed Kroger merger.
Safeway Hechinger Mall Location in D.C. Closes
The Safeway store at Hechinger Mall in Washington, D.C., permanently closed after nearly 40 years, primarily due to an expiring lease.
Albertsons Continues Store Closures Across Banners
Albertsons is continuing to close Safeway and other banner stores (e.g., Hayward, CA; Newport, OR) as part of an ongoing network reevaluation following the failed Kroger merger, aiming to optimize its retail footprint.
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🔍Deep Dive Analysis
The narrative of Albertsons and Safeway store closures is marked by two major periods of significant activity, each driven by distinct corporate strategies and regulatory pressures.
The first wave of closures stemmed from the 2015 merger of Albertsons and Safeway. To gain approval from the U.S. Federal Trade Commission (FTC) for their $9.2 billion merger, the companies were required to divest 168 stores across eight states to address antitrust concerns and prevent market monopolies. Many of these divested stores, specifically 146 locations, were sold to Haggen Holdings, LLC, a smaller Pacific Northwest grocery chain. However, Haggen struggled with this rapid expansion, overextending its operations and failing to attract customers, leading to its bankruptcy filing in September 2015. This resulted in the closure of numerous former Albertsons and Safeway stores operating under the Haggen banner, with Albertsons eventually reacquiring 29 of these 'core' Haggen stores in March 2016. The initial divestitures and subsequent Haggen failures led to job losses and the creation of 'food deserts' in some communities.
The second, more recent and ongoing wave of closures began to accelerate in 2025 and 2026, following the dramatic collapse of the proposed $24.6 billion merger between Albertsons and Kroger. This merger, announced in October 2022, faced significant regulatory hurdles, with the FTC and several state attorneys general filing lawsuits to block it on antitrust grounds. Despite revised divestiture plans in September 2023 and April 2024, which proposed selling up to 579 stores to C&S Wholesale Grocers, the merger was ultimately blocked by a federal court in December 2024.
With the Kroger merger off the table, Albertsons resumed its 'store optimization efforts,' which had been paused during the merger's pendency. This strategic review involves evaluating store performance, expiring leases, and market demand to position the company for future growth. As a result, Albertsons closed 35 stores across its various banners, including Safeway, Acme, Vons, Randalls, and Balducci's, in fiscal 2025—a significant increase from 10 closures in fiscal 2024. These closures trimmed fiscal 2025 sales by $63.4 million and increased related expenses to $45.1 million.
As of August 2026, Albertsons continues to shutter Safeway and other brand locations. Confirmed Safeway closures in 2026 include locations in Hayward, California; Newport, Oregon; and Washington, D.C., with the Hechinger Mall Safeway in D.C. closing after nearly 40 years due to an expiring lease. The company emphasizes that these decisions are not a broad retreat but rather a targeted effort to reinvest resources into existing, higher-performing stores and open new ones where demand is strong. Albertsons also states its commitment to relocating affected employees to other stores where possible. Concurrently, Kroger also announced plans in June 2025 to close approximately 60 underperforming stores by the end of 2026, further reshaping the competitive grocery landscape.
What If...?
Explore alternate histories. What if Albertsons and Safeway Store Closures made different choices?