As Cincinnati-based Kroger prepares to buy its central Ohio competitor Giant Eagle, some of the Pennsylvania-based chain’s locations will likely be left on the cutting room floor.
Kroger announced the $1.65 billion deal on July 1. If approved by the Federal Trade Commission, that would add nearly 200 supermarkets to its domain across western Pennsylvania, West Virginia, Maryland, Indiana and Ohio. That includes nearly 20 stores in central Ohio, where Kroger is the dominant grocery chain.
But the combined chain’s footprint might not be that large locally when all is said and done.
It wasn’t immediately clear on July 1 what the merger would mean for Giant Eagle’s central Ohio stores. But Kroger’s release stated that the two chains “expect to make limited Giant Eagle store divestitures,” which means Kroger and Giant Eagle could either close down or sell off Giant Eagle stores as part of the commission’s process.
If that happens, an analysis by Supermarket News projects that Columbus stores are the most likely to be sold off.
Kroger’s grip tightens on grocery market, but may have limits
Central Ohio is the only region of Ohio where Kroger and Giant Eagle store locations significantly overlap, with some being on the same block. But their hold on the Columbus-area market is far from equal. Kroger operates 43% of the central Ohio market, while Giant Eagle operates just 6.5%.
A spokesperson for Kroger’s Columbus Division previously told The Dispatch that Kroger has “no plans to close stores or eliminate frontline jobs as a result of this transaction” though the spokesperson did reaffirm that divestitures could happen “as part of the standard regulatory review process.”
This is a typical practice in mergers to avoid antitrust issues and satisfy federal regulators’ concerns over lack of competition between retailers. These closures or sales could offer other retailers more opportunity to grow in the region.
Giant Eagle will retain its name, even under Kroger ownership, and Kroger said the deal is expected to wrap up in 2027.
But there may still be a fight ahead. In 2024, the Federal Trade Commission shot down Kroger’s attempt to acquire Albertsons, an Idaho-based grocery chain. The commission, then under former President Joe Biden, praised the result as protecting competition, consumer wallets and union employees.
The National Grocer’s Association, a organization advocating for independent community grocers, urged regulators to conduct a “robust review” of the purchase and asked that independent grocers should be prioritized in any sales from the deal.
“Strong antitrust enforcement is more important than ever to protect consumer choice, preserve competitive markets, and maintain a level playing field for independent grocers, farmers, suppliers, and the communities they serve,” the association said in a statement.
Business and consumer issues reporter Samantha Hendrickson can be reached at shendrickson@dispatch.com.
This article originally appeared on The Columbus Dispatch: Columbus Giant Eagles most likely choices if Kroger sells for merger
Reporting by Samantha Hendrickson, Columbus Dispatch / The Columbus Dispatch
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By Samantha Hendrickson, Columbus Dispatch | USA TODAY Network
