Margaret Caldwell featured in Wealth Management Magazine: Retail landlords see largely pluses in the Kroger/Albertsons merger

Margaret Caldwell –
Investment Sales Broker

ATLANTA, GEORGIA (October 24, 2022) - Margaret Caldwell, investment sales broker in Northmarq's Atlanta investment sales office, shared her insights regarding the Kroger/Albertsons merger in Wealth Management Magazine. On October 14, Kroger announced plans to purchase rival grocer Albertsons. The move, expected to close in early 2024, would bring potential revenue to $200 billion and would have a consolidated employee base of more than 700,000. The two grocers currently operate 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers nationwide.

The overlap and concentration of stores in the Mid-Atlantic, Midwest, Southwest and Pacific Northwest markets mean some locations might be closed. "Sales per sq. ft. will be one of the most important factors for deciding which stores to close, but the decisions will also depend on concerns about giving up market share to a competitor across the street," said Caldwell. She also highlighted the close proximity of some Kroger and Albertsons stores on the West Coast.

Nationwide, Kroger is currently ranked second in market share at 10.2 percent. Walmart has the number one ranking and controls a 21.3 percent market share. Costco is ranked third with a market share of 7.0 percent, and Albertsons fourth with a 5.8 percent market share.

Other topics include:

  • What the merger means for competitors
  • FTC regulations
  • Opportunities in the larger CRE market post close

Read the full story.