By Oliver Lazenby
The Bellingham Business Journal
Bellingham-based Haggen will acquire 146 Safeway and Albertsons stores throughout Washington, Oregon, California, Nevada and Arizona, pending approval by the Federal Trade Commission.
Albertsons and Safeway are planning to merge, and the grocery chains must sell the stores as part of a divestment required by the FTC.
Haggen will go from having 18 stores with 16 pharmacies in Washington and Oregon to 164 grocery stores with 106 pharmacies along the West Coast. The company will also go from 2,000 employees to more than 10,000.
The deal would mean that Safeways in Everett and Oak Harbor and Albertsons stores in Snohomish and Monroe would switch to the Haggen brand.
“From my perspective it’s a great opportunity for Haggen and the businesses that support us,” said Haggen CEO John Clougher, who joined the company in October. “My goal is to grow Haggen and grow it in a healthy fashion.”
Haggen will convert all of the stores in the first half of 2015 if the deal receives approval early next year. Albertsons and Safeway employees including the current store management teams will have the opportunity to become employees of Haggen.
“We’re going to offer everyone who works at those stores a job. That’s our commitment,” Clougher said in a conference call early Friday evening.
The company will be led by two CEOs. Clougher will be the Pacific Northwest CEO with primary responsibility for Washington and Oregon. Bill Shaner, former CEO of Here Today discount retailer and Save-A-Lot foods, has been hired as CEO of the Pacific Southwest region with primary responsibility for stores in California, Nevada and Arizona.
Haggen does business differently than Safeway or Albertsons and has more emphasis on local products, Clougher said. The brand will take that into account while transitioning the stores.
“Our basic strategy is when the brand changes to Haggen, we want to do everything we can to make sure the customer base of that store can still get the products that they want,” Clougher said. “Our process is to not disrupt the current experience, yet we do want to bring the Haggen experience by bringing in our private label and some of our great bakery products and food services. We’re looking to add, we’re not looking to take away.”
Albertsons and Safeway are selling 168 stores in all as part of their merger. Associated Food Stores will purchase eight stores in Montana and Wyoming, Associated Wholesale Grocers/Minyards will purchase 12 stores in Texas and Supervalu will purchase two stores in Washington — again, subject to FTC approval.
Haggen has closed 10 stores in the past two years. When Clougher took over in October, he said sales numbers were up and that Haggen was ready to grow again.
The Snohomish County acquisitions are Safeways at 7601 Evergreen Way in Everett and at 31565 Highway 20 in Oak Harbor, and Albertsons stores at 19881 U.S. 2 in Monroe and at 17520 Highway 9 SE in Snohomish.
