Alaska
The parent companies of 2 of Alaska’s grocers want to merge. Here’s what we know.
Last week, Alaska Congresswoman Mary Peltola joined 27 other D.C. lawmakers from 16 states in a legal brief backing a lawsuit by federal regulators to block a massive, national grocery store merger.
Most Alaskans live in a community where a Fred Meyer store competes directly with a Carrs or a Safeway, so the proposal for one parent company to buy the other for $24.6 billion has a lot of Alaska consumers worried.
Here’s what we know about where the proposal is now, after it was first announced in October of 2022.
What’s at stake?
If you take what the companies are saying in good faith, not much. They’ve made sweeping promises about the good things that will happen and the bad things that won’t if Kroger, which owns Fred Meyer, is allowed to buy Albertsons, which owns Safeway and Carrs. The companies say investors, customers, workers and communities are all supposed to benefit.
“We are confident our transaction with the proposed divestitures will mean lower prices and more choices for customers,” Kroger CEO Rodney McMullen said in a video about the proposed merger. “It will mean more opportunities for retail associates to grow their career while we secure the future of good paying union jobs.”
Here are some of the specific promises Kroger and Albertsons have made:
- No store closures
- No pharmacy closures
- No front-line job losses with protection for worker pay and benefits
- A $500 million investment in reducing prices
- A $1 billion investment in employee benefits
- A $1.3 billion investment to improve Albertsons stores
Kroger points to its 20-year track record that includes lowering its profit margins to keep prices down amid past acquisitions.
How can all of these promises be possible?
The idea is if Kroger and Albertsons merge, they’ll be in better shape to compete with even bigger retailers, like Costco and Walmart, as well as growing competitors, like dollar stores that now sell groceries and even Amazon. Bigger scale means bigger efficiencies, and that’s where the upside is supposed to come from.
Of course, most Alaskans live in communities where Fred Meyer competes with Carrs or Safeway. Specifically, that’s Anchorage, Eagle River, Palmer, Wasilla, Fairbanks, Juneau and Soldotna.
Federal regulators are wary of mergers because they can be anticompetitive, concentrating too much market power and hurting regular shoppers. To try to win regulators’ approval, Kroger and Albertsons say they’re prepared to sell off all 15 of the Carrs and Safeway stores in those Alaska communities, plus three more in Girdwood, Kenai and North Pole, to a company called C&S Wholesale Grocers based in New Hampshire.
The Safeways in Seward, Valdez, Kodiak, Ketchikan, Nome and Unalaska are not on the divestment list and would remain with the merged company.
Nationally, Kroger and Albertsons plan to sell a total of 579 stores, plus six distribution centers and a dairy plant, to C&S.
Again, McMullen says these divested stores won’t close, because C&S is committed to running them as they are today.
Albertsons CEO Vivek Sankoran says C&S will make the landscape more competitive.
“Their deep industry knowledge and experience gives us great confidence in their ability to become even fiercer competitors moving forward,” Sankoran said in the video.
C&S CEO Eric Winn also says his company is playing the long game.
“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” Winn said in an April press release.
The United Food and Commercial Workers Local 555, which represents 30,000 grocery store workers in Oregon, Idaho and Washington, came out in support of the merger in February. However, the parent union, which represents 1.2 million workers, voted last year to oppose the merger. Other UFCW locals, including Alaska’s, also oppose the merger.
So what’s the problem? Why do people oppose the merge?
Basically, opponents just don’t believe the companies, and there isn’t anything in place to hold them to their promises.
In Alaska, the opponents include Democratic Congresswoman Mary Peltola, 24 state lawmakers, the grocery store workers’ union and lots of regular Alaskans.
“It’s a huge issue for Alaskans that resonates. It’s not a political issue, it’s a pocketbook issue,” said Veri di Suvero, executive director of the Alaska Public Interest Research Group, a statewide consumer advocacy nonprofit that also opposes the merger. “Whether or not it’s in good faith, about these spinoffs, we’ve seen over and over again that they don’t work.”
Di Suvero points back to 1999, when Safeway bought out Carrs. AKPIRG and Alaska’s attorney general got involved, and they worked out a deal to sell off seven stores to let the merger go through.
Six of those stores became Alaska Marketplace grocery stores. They all closed within about a year.
The seventh, at the University Center mall in Midtown Anchorage, survived and became a different grocery store, Natural Pantry, which eventually outgrew the space and built its current, standalone location off 36th Avenue.
Fast forward to 2015, and Safeway got swallowed up by Albertsons. Federal regulators approved that deal after the companies agreed to divest 168 stores. 146 went to a small Washington grocery retailer called Haggen.
Haggen wasn’t successful, either. Within a year, Haggen sued Albertsons and accused it of sabotaging stores it bought. It got sued back by Albertsons and filed for bankruptcy. In the ensuing firesale, Albertsons ended up buying back many of its divested stores, and ultimately what remained of Haggen itself.
Di Suvero is also concerned about how unique Alaska’s supply chain is, particularly its heavy dependence on a single port. Di Suvero and other opponents question if C&S has the expertise and wherewithal to step in and run its new grocery stores successfully.
So critics think C&S is setting itself up for failure, like Haggen?
Yes.
C&S isn’t a national player in the world of retail groceries. It owns the Piggly Wiggly brand and runs some Piggly Wiggly stores directly, but most are independently owned and operated under a franchise license. It also runs 11 Grand Union markets.
But C&S is a big deal nationally in grocery wholesaling, supplying more than 7,500 supermarkets. Forbes says it’s an industry leader in supply chain innovation, the largest wholesale grocery supply company in the country and the eighth biggest privately held company in the country. So C&S is in a totally different league from Haggen.
That said, the Federal Trade Commission says C&S doesn’t have its own store brand product lines, loyalty programs or e-commerce platforms it needs to successfully compete.
Does Alaska figure prominently into the overall merger?
No.
Kroger and Albertsons combined have 36 stores in the state. That’s 11 Fred Meyers, and 24 Carrs or Safeways plus Crow Creek Mercantile in Girdwood. Across the country, they have about 5,000.
And unlike in the Safeway-Carrs merger in 1999, the governor’s office has been hands off. Gov. Mike Dunleavy has not weighed in. The state Department of Law, which has its own consumer protection unit, says it’s monitoring the merger and the Federal Trade Commission’s legal fight to stop it.
Outside of Alaska, eight states and the District of Columbia have joined the FTC’s lawsuit in federal court in Oregon.
And the attorneys general of Colorado and Washington have their own similar lawsuits.
What happens if the merger gets shot down?
There’s a lot invested in this merger. A reporter with WCPO in Cincinnati, where Kroger is headquartered, dug through financial filings and found that through March, the two parent companies had already spent $864 million in merger-related expenses.
WCPO also found that Kroger had agreed to pay Albertsons $600 million if the merger fails.
So that’s a big incentive for Kroger to appeal if these legal fights don’t go its way.
So what’s next?
The legal stuff.
Hearings in the FTC case at the U.S. District Court of Oregon begin Aug. 26. This case is important, but won’t necessarily make or break the merger. The judge there is supposed to rule on whether or not to pause the merger, while more substantive arguments go before an administrative law judge in Washington, D.C.
The trial in the Washington state court is scheduled to begin Sept. 16, and, separately, a Colorado state judge last month imposed his own order to pause the merger, pending a legal challenge there. That trial is scheduled to begin Sept. 30.
Jeremy Hsieh covers Anchorage with an emphasis on housing, homelessness, infrastructure and development. Reach him atjhsieh@alaskapublic.orgor 907-550-8428. Read more about Jeremyhere.
Alaska
Fatal vehicle collision left one dead, two injured at mile 91 of Seward Highway, APD says
ANCHORAGE, Alaska (KTUU) – On Thursday, a vehicle collision at mile 91 of the Seward Highway left one dead and two injured, according to an update from APD.
The collision involved two vehicles — a semi-truck and a passenger vehicle.
The Girdwood Fire Department responded at about 8:41 p.m. and pronounced the male driver of the vehicle dead at the scene.
APD says a male and female were transported to the hospital with non-life-threatening injuries.
At the time of publication, the southbound and northbound lanes of the Seward Highway remain closed.
APD is currently investigating the circumstances of the collision and the victim’s identity will be released once they have completed next-of-kin procedures.
Original Story: An incident involving two vehicles at mile 91 of Seward Highway leaves two injured, according to Anchorage Police Department (APD).
APD is responding to the scene and travelers should expect closures at mile 91 for both northbound and southbound lanes of the Seward Highway for at least the next 3 to 4 hours.
Updates will be made as they become available.
See a spelling or grammar error? Report it to web@ktuu.com
Copyright 2025 KTUU. All rights reserved.
Alaska
Strong winds destroy deer shelter at Alaska Wildlife Conservation Center
ANCHORAGE, Alaska (KTUU) – Strong winds in the Portage area on Monday destroyed a shelter building at the Alaska Wildlife Conservation Center that was used to house Sitka deer. The conservation center says 80 mph winds swept through Portage Valley.
The conservation center says no animals were injured, but they are quickly raising money to rebuild. Their goal is $30,000, and as of Thursday morning, they have already fundraised over $26,000.
Sales & Marketing Director Nicole Geils said, “The shelter was in their habitat. It was essential for providing them a safe Haven during harsh weather. It’s a really useful area for when we’re feeding and doing enrichment with the deer and it’s also a safe space for recovery after medical procedures when needed.”
Executive Director Sarah Howard described how she learned about the damage.
“We had a staff member that radioed, ‘The shelter’s gone!’ And a couple of us were at least able to make a little light of the situation. Like, did it go to Oz? And thankfully, it didn’t go too far, and the deer were okay,” Howard said.
The conservation center is still accepting donations through their website.
See a spelling or grammar error? Report it to web@ktuu.com
Copyright 2025 KTUU. All rights reserved.
Alaska
After school funding dispute, 4 Alaska districts move on without federally promised money
Until last month, the U.S. Department of Education said Alaska underfunded four of its largest school districts by $17.5 million. As a result of a recent agreement, the schools in Anchorage, Fairbanks, Juneau and Kenai Peninsula Borough won’t directly receive any of that money.
However, two of the districts said they weren’t counting on receiving the money as they planned their current budgets, while the other districts either didn’t respond or declined to comment.
The $17.5 million is part of COVID-era pandemic funding, and until last month, how Alaska distributed that funding was at the heart of a years-long dispute between federal and state officials, and whether it was spent fairly.
The state repeatedly defended their school spending plan, while the federal government asserted the state failed to comply with guidelines and reduced spending on these districts with high-need or high-poverty areas, and withheld the sum they said was owed.
Federal officials said the state reduced spending to the Kenai Peninsula and Anchorage school districts by up to $11.89 million in the 2021 to 2022 school year, and all four districts by $5.56 million the following year.
Kenai Superintendent Clayton Holland said the district never budgeted for this particular federal COVID funding, as they were aware of the dispute.
“Had it gone through, we would have welcomed it, as we are facing a potential deficit of $17 million for next year” and have nearly exhausted the balance of funding the district can spend without restrictions, Holland said.
Anchorage School District officials did not respond to requests for comment.
The dispute came to an end on Dec. 20, when the federal department told the state it was releasing the funding, citing a review of the state’s one-time funding boosts in the last two budgets, and considered the matter closed.
Alaska Education Commissioner Deena Bishop led the state’s defense effort, including appealing the penalty, and applauded the move by the federal Department of Education. She said the state always followed the state law governing school funding.
“The department said, ‘We don’t agree with your formula, you should have given these guys more.’ And we said, ‘No, no, no. Only our Legislature can make the law about our formula. That’s why we stood behind it,” she said in an interview Tuesday.
The dispute centered around what was known as a “maintenance of equity” provision of a federal COVID aid law, which banned states from dropping per-pupil spending during the pandemic. Bishop said that decreases in funding in the four districts were due to drops in enrollment, according to the state’s spending formula.
Bishop defended the formula as equitable, noting that it factors in geographic area, local tax bases, and other issues. “I just felt strongly that there’s no way that they can say that we’re inequitable, because there are third-party assessments and research that has been done that Alaska actually has one of the most equitable formulas,” she said.
“Our funding formula is a state entity. Our districts are funded according to that,” Bishop said. “And so basically, they [U.S. Department of Education] argued that the distribution of funds from the state funding formula, the state’s own money, right, nothing to do with the Feds, was inequitable.
“So they picked these districts to say, ‘You need to give them more.’ And we’re saying, ‘No, you don’t have a right to say that. We spent your money, how you said, but only the state Legislature can say’” how to spend state money, she said.
She said the state felt confident about their spending plan for American Rescue Plan Act funding.
In addition to temporarily withholding the funding, the federal government further penalized Alaska by designating it a “high risk” grantee.
Federal and state officials went back and forth on compliance, with the state doubling down, defending their school spending. By May, the state had racked up another $1 million in frozen federal funds.
Bishop said despite the holds from the feds, they continued to award the funds to districts.
“We felt as though we would prevail. So we never wanted to harm school districts who were appropriated those funds the way that they were supposed to,” she said. School districts followed the dispute closely.
Juneau School District’ Superintendent Frank Hauser said the district did not expect or budget for the funds.
“JSD was slated only to receive approximately $90,000 of the “maintenance of equity” funds, much less than Kenai, Fairbanks, or Anchorage,” he said in an email. “JSD will not receive that money now; however, we had not anticipated receiving it and had not included it in our budget projection.”
The Fairbanks North Star Borough School District declined to comment on the issue. A spokesperson said the district administration is awaiting clarification from the state education department.
On Monday, the administration announced a recommended consolidation plan for five elementary schools to be closed, citing a $16 million deficit for next year. A final vote on whether to close the schools is set for early February.
Now the state is in the process of applying for reimbursements from the federal Department of Education, and expects to receive that full $17.5 million award, Bishop said. If districts have outstanding pandemic-related expenses, she said those can be submitted to the state, and will be reimbursed according to the state’s COVID-19 funding guidelines. “We’ll process that, and then we’ll go to the Feds and get that money back,” she said.
In December, Gov. Mike Dunleavy applauded the federal announcement, calling the dispute “a tremendous waste of time,” in a prepared statement. He repeated his support for President-elect Donald Trump’s calls to eliminate the U.S. Department of Education.
“On the bright side, this saga is a wonderful case study of the U.S. Department of Education’s abuse of power and serves as further evidence for why I support the concept of eliminating it,” he said.
Dunleavy linked to a social media post he made on X, which read, in part, that eliminating the department “would restore local control of education back to the states, reduce bureaucratic inefficiency and reduce cost. Long overdue.”
Sen. Löki Tobin, D-Anchorage and chair of the Senate Education Committee, pointed to the timing for the outgoing Biden administration and federal leaders’ desire to release funding to Alaska schools.
“It’s very clear that if the presidential election had ended in a different result, we would not be having this conversation,” she said. “Instead, they would be continuing to work with the department to find a more elegant, a more clean solution.”
She said the federal letter announcing the end to the long dispute doesn’t mean the issue of equity was resolved.
“I think their letter to the Department of Education and Early Development here in Alaska was very clear that Alaska never did fully comply with the guidelines, but instead, due to a want and a fervent hope that the resources would get into the schools and into the communities that so desperately needed them, that they would choose to not pursue further compliance measures,” she said.
Last year, the Legislature passed a budget with $11.89 million included for the state to comply with the federal requirements, but that funding was vetoed by Dunleavy, who defended the state’s position, saying the “need for funds is indeterminate.”
The budget did include a one-time funding boost to all districts, but Tobin said the annual school aid debate left districts in limbo for future budget planning.
“We can see how this has cost school districts, how it has created instability, how it has resulted in a system that is unpredictable for funding streams for our schools,” Tobin said.
Kenai Superintendent Holland expressed hope that school funding would be prioritized by elected officials this year.
“The bigger issue for us, and for all Alaskan school districts, is what our legislators and governor will decide regarding education funding in the upcoming legislative session,” Holland said.
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