Cincinnati-based The Kroger Co. is reportedly evaluating two possible retail acquisitions: Rite Aid (Camp Hill, Pa.) and Cub Foods (Minneapolis).
The speculation has arisen upon a $24 billion acquisition deal between Rite Aid and grocer Albertson’s (Boise, Idaho) falling through last week, as well as a recent decision by Cub Foods’s parent company SuperValu (Eden Prairie, Minn.) to sell off its retail business in favor of wholesale distribution. While Kroger has declined to comment on the speculation, reports the Cincinnati Business Courier, analysts see the acquisition of Cub Foods as most likely.
“I think Cub would be largely incremental to them,” said Jim Hertel, SVP at Inmar Analytics (Long Grove, Ill.). “I’d say to the extent they’d invest in brick-and-mortar, that might make sense.” Rick Shea, President of Shea Food Consultants (Minneapolis), affirmed the idea. “If they go into a market, they’d be looking to be one or two in market share,” he said.