Albertsons closes more Safeway stores after Kroger deal collapse

Albertsons Companies is closing additional Safeway locations in 2026 as it reviews its store network, nearly two years after the planned $24.6 billion merger with Kroger was blocked. The company said on August 14 that the closures are part of a broader strategy to reposition for the future. During the merger talks, Albertsons had slowed changes to its store portfolio, but after the deal fell apart it resumed evaluating locations.

Three Safeway stores have closed this year: in Hayward, California, Newport, Oregon, and Washington, D.C. Albertsons has not released a complete list of affected stores. The company said it is working to place affected employees at other locations where possible.

The Kroger-Albertsons merger was blocked by a federal court and a Washington state judge in December 2024, ending the takeover and sparking a dispute between the two companies. Albertsons now plans to open stores in high-demand areas while shutting underperforming ones, and further closures remain possible as the review continues.