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Safeway store closures: Why Albertsons is closing more locations after Kroger deal collapse
Safeway is closing more stores in 2026 as parent company Albertsons reviews its network after the $24.6 billion Kroger merger collapsed.
Safeway is closing more locations as parent company Albertsons Companies reviews its store network across the US Albertsons said on August 14 that it is continually evaluating its stores and making changes to position the company for the future.
The latest closures come nearly two years after Kroger's $24.6 billion plan to buy Albertsons collapsed, allowing Albertsons to move ahead with its own store strategy.
Why is Albertsons closing Safeway stores?
Albertsons says the closures are part of a broader review of its store network. The company is looking at where its stores are located, how they are performing and where it sees better opportunities for growth. Albertsons said that during the Kroger merger negotiations, it had slowed down potential changes to its store portfolio, as reported by USA Today.
After the merger failed, the company said it started opening new stores in areas where demand was high while also making the difficult decision to close some locations. This means the company is not simply shutting stores across the board. It is trying to change its store network based on where it believes customers and business opportunities are strongest.
Which Safeway stores have closed in 2026?
Albertsons and Safeway did not provide a complete list of stores that have already closed or are scheduled to close when asked on August 14. According to reports from Inc. Magazine and The Independent, three Safeway locations have closed in 2026:
- Hayward, California: 231 W. Jackson St.
- Newport, Oregon: 2220 N. Coast Highway
- Washington, D.C.: 1601 Maryland Ave.
The list may not represent every Safeway location affected because Albertsons has not released a full public list of closures.
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What will happen to workers at the closing stores?
Albertsons said it is trying to find jobs at other stores for as many affected employees as possible. The company told USA Today on August 14 that it is working to place affected associates at other locations. This means employees at stores being closed could have opportunities to move to another Albertsons-owned store instead of losing their jobs immediately.
Why was Albertsons supposed to be sold to Kroger?
Kroger announced plans in October 2022 to buy Albertsons in a deal worth $24.6 billion. The two companies argued that combining their businesses would create a larger grocery company that could compete more effectively. Kroger and Albertsons said the combination would create a much larger grocery company.
The FTC argued that the merger could reduce competition in the grocery industry and potentially lead to higher grocery prices.
The merger was blocked in December 2024
The proposed $24.6 billion Kroger-Albertsons merger fell apart after it was blocked by a federal court and separately challenged by a King County judge in Washington state in December 2024. The legal setbacks ultimately ended the takeover and set off a dispute between the two companies over who was responsible for the collapse.
How is the failed Kroger deal connected to the Safeway closures?
The merger helps explain why Albertsons is now making more changes to its Safeway stores. During the negotiations, Albertsons said it had held back on making major changes to its store portfolio. After the Kroger deal collapsed, the company was able to resume making those decisions on its own, according to USA Today.
That has included plans to open stores in areas where demand is strong while shutting locations that no longer make sense for the business. The Safeway closures are therefore part of a broader effort by Albertsons to reorganize its store network following the failed merger.
What happens next for Safeway?
Albertsons has not provided a complete list of Safeway stores that could eventually close. The company has said it is continuing to review its store network, meaning additional closures remain possible as it decides which locations are viable for the long term. At the same time, Albertsons plans to add stores in markets where it sees stronger demand. For employees affected by closures, the company says it will try to place as many workers as possible at other nearby stores.
