Albertson's gets bigger
Albertson's, the #3 supermarket operation in the US (after Wal-Mart and Kroger) has agreed to buy the US supermarket assets of Sainsbury PLC, the UK's #3 chain. The $2 billion dollar deal will allow Kroger to add regional supermarket operations Star Markets and Shaw's to its operations.
The Shaw's/Star Market division of Sainsbury is the 11th largest supermarket chain in the US, and the second largest in New England, with over 200 stores. Albertson's previously had no presence in the region. It will now have over 2,500 stores in 37 states.
The sale makes sense. Albertson's wants to increase its presence to fight the Wal-Mart onslaught and be one of the survivors. Sainsbury, which has its own problems in Britain, can't really compete as such a small player in a rough market. It's yet another episode in the rollup of the US supermarket business.
