Boise, Idaho — Safeway shoppers in several communities are facing store closures as parent company Albertsons Companies takes another look at its retail footprint following the collapse of its proposed merger with Kroger.
Albertsons told that it had slowed its evaluation of its store portfolio while the $24.6 billion Kroger transaction was still pending. After the deal fell apart, the company resumed reviewing its network and deciding where stores make sense for long-term demand.
That process includes opening stores in markets where Albertsons sees growth potential while also making the difficult decision to close locations that no longer fit its strategy.
Albertsons Closed 35 Stores in Fiscal 2025
The latest closures come after a significant increase in the number of stores Albertsons has already shuttered.
According to the company’s latest annual filing, Albertsons closed 35 stores during fiscal 2025, more than three times the 10 stores it closed in fiscal 2024.
The company closed eight stores in fiscal 2023, meaning the pace of closures has increased substantially over the past several years.
Albertsons opened nine stores during fiscal 2025 and finished the year operating 2,244 locations across 35 states and Washington, D.C.
The closures also affected the company’s financial results. Store closures, after accounting for new openings, reduced fiscal 2025 sales by approximately $63.4 million.
Costs related to closed stores and surplus properties also increased sharply, reaching $45.1 million, compared with $15.9 million a year earlier.
Some Safeway Locations Have Already Closed in 2026
Albertsons has not released a complete list of all planned Safeway closures, making it difficult for customers to know which locations could be affected next.
However, Safeway stores that have closed during 2026 include locations at 231 W. Jackson St. in Hayward, California; 2220 N. Coast Highway in Newport, Oregon; and 1601 Maryland Ave. in Washington, D.C.
The closures could have a significant effect on local shoppers, particularly in communities where a Safeway store has served as a major neighborhood grocery option.
Albertsons said it is working to place as many affected employees as possible at other company stores, according to USA Today.
Company Continues Investing in Remaining Stores
The closure strategy does not mean Albertsons has stopped investing in its physical stores. During fiscal 2025, the company completed 94 store remodels and opened nine new locations.
Albertsons spent approximately $1.83 billion in capital expenditures during the year, with spending covering store improvements as well as digital and technology investments.
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The company operates 22 grocery banners, including Safeway, Vons, Jewel-Osco, ACME, Shaw’s and Tom Thumb.
As of February 28, 2026, Albertsons employed approximately 280,000 workers, making decisions about its store network important not only for shoppers but also for thousands of employees.
Failed Kroger Merger Changed Albertsons’ Strategy
The latest store review comes after the dramatic collapse of Albertsons’ planned combination with Kroger.
The two grocery companies announced their proposed merger in 2022, arguing that the deal would create a stronger competitor in the grocery industry.
The Federal Trade Commission challenged the transaction, however, arguing that combining the companies could reduce competition, increase grocery prices and limit competition for grocery workers.
On December 10, 2024, the U.S. District Court for the District of Oregon granted the FTC’s request for a preliminary injunction blocking the merger. The FTC had brought the challenge alongside nine state attorneys general.
The proposed combination subsequently collapsed, leaving Kroger and Albertsons to fight over the financial consequences of the failed deal.
Kroger and Albertsons Remain Locked in Legal Fight
After the merger fell apart, Albertsons sought a $600 million termination fee from Kroger.
Kroger later filed counterclaims in Delaware, disputing that it owed the payment and accusing Albertsons of undermining the regulatory process. Albertsons has disputed Kroger’s account.
While those legal disputes continue, Albertsons is now moving forward independently and reassessing where its stores can remain profitable for years to come.
For Safeway customers, that means more store closures could remain possible as Albertsons determines which locations have enough long-term demand to justify continued investment.
At the same time, the company’s remodeling program and new-store openings suggest that Albertsons is not simply shrinking. Instead, it appears to be reshaping its footprint, closing weaker locations while directing investment toward markets where it expects stronger future demand.
Is there a Safeway near you that you would hate to see close? Share your thoughts and how important the store is to your community in the comments below.
