Supermarket Shakeup for Millions of Safeway, Albertsons Shoppers

The sale of a mere 168 stores is a drop in the bucket for the soon-to-be-combined Albertsons and Safeway, and their combined 2,400+ stores. But 168 stores changing hands is a pretty big deal, for the millions of Safeway and Albertsons shoppers who will soon have to get used to new ownership and newly renamed, revamped and renovated stores.

Albertsons and Safeway announced on Friday that they would be selling 168 Albertsons, Safeway, Vons and Tom Thumb stores in eight states, as part of a plan to avoid antitrust issues as the two companies seek federal regulatory approval for their merger.

A couple dozen stores in Texas, Montana, Wyoming and Washington state will be split up among three buyers – Supervalu, and the retailer cooperatives Associated Food Stores and Associated Wholesale Grocers (see the complete list of stores changing hands below). But the vast majority of the stores – 146 in all – will be sold, and converted, to Haggen.

The small, 18-store Haggen chain with a presence in Oregon and Washington is about to expand across the west coast, in one fell swoop. Its purchase will give it many more locations in Oregon and Washington, as well as stores in California, Nevada and Arizona.

After the anticipated close of the transaction early next year, Haggen plans to begin converting all of its newly-acquired Albertsons and Safeway stores to the Haggen banner. “With this pivotal acquisition, we will have the opportunity to introduce many more customers to the Haggen experience,” Haggen board of directors chair John Caple said in a statement.

So what is the “Haggen experience”? Well, it’s not quite like the Albertsons or Safeway experience, so shoppers who find their stores rebranded will have some adjusting to do. With a fresh, locally-sourced focus, Haggen competes with the likes of Trader Joe’s and Whole Foods, though it carries plenty of name brand items you’d find in a standard grocery store as well.

Haggen has a loyalty card, which will be a change for customers who currently shop at Albertsons, which got rid of theirs. It doesn’t offer digital coupons on the card, though, which will be a change for customers of Safeway, whose Just for U program has made its Club Card more than just a standard discount card. As for Haggen’s coupon policy, it allows stacking of manufacturer’s and store coupons, but it doesn’t allow overage or offer double or triple coupons.

Reviewers on Yelp generally have good things to say about Haggen, though many note that you get what you pay for. “There are cheaper places to shop in town,” one writes, “but the Haggen shopper is not one solely concerned with price.” Another adds, “good selection, but more expensive than Safeway.” Opines a third reviewer, “don’t come here if you’re poor. I am poor and I only buy my bread here.”

Haggen’s major expansion comes just a few years after some contraction. The Haggen family sold their 80-year-old chain to a private investment firm, which promptly shut down a dozen stores. Now, the new owners promise they have turned the company around and are in a much better position to successfully expand the chain’s store count nearly tenfold.

Albertsons, meanwhile, anticipates that its purchase of Safeway will be complete by next month. Safeway and its other owned stores will not be converted to Albertsons. “These are strong brands, and our only plan is to make them even better for you,” Albertsons promises. And the sale of the 168 stores will allow it to keep its pledge not to close any stores as a result of the merger. “We look forward now to the transaction’s close,” Safeway CEO Robert Edwards said in a statement, “so we can begin working together to enhance the loyalty of grocery shoppers by delivering high quality products, great service and lower prices to become the favorite local supermarket in every neighborhood we serve.”

Except in the neighborhoods it no longer serves. Instead, shoppers there will be welcoming a small regional grocery chain – with big plans for the future.

Are any of your stores affected? Take a look at the complete list of stores that will be changing hands:

New owner: Associated Food Stores

New owner: Associated Wholesale Grocers

New owner: Supervalu

New owner: Haggen