The Kroger Co. (Cincinnati) has been rumored to be first in line when Albertsons Inc. (Boise, Idaho) puts its 2500-unit supermarket chain up for sale.
Albertsons, the second-largest grocery chain in the U.S., said last week that it was seeking a buyer because it can no longer compete with the growing competition from Wal-Mart supercenters.
Kroger, the nation’s largest grocery chain, may see opportunities in markets where it currently doesn’t have much strength, such as New England and the Southeast, especially Florida.
Albertsons has suggested an initial asking price of $16.5 billion. It does just under $40 billion a year. Kroger is over $56 billion in annual sales.
Kroger is keeping mum on its plans. “We don’t comment on rumors or speculation,” said Gary Rhodes, spokesman for Kroger, which operates more than 3750 supermarkets and multi-department stores in 32 states.