The Federal Way Albertsons, located at 31009 Pacific Highway South, may merge and sell their store if Pacific Northwest chain Haggen receives approval from the Federal Trade Commission to acquire them.
Haggen is buying 146 Vons, Pavilions, Albertsons and Safeway stores, including 83 in California. The Federal Trade Commission ordered them sold as part of the merger of Albertsons and Safeway earlier this year. 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 the Albertsons in Federal Way 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.”
The Bellingham company currently operates 18 stores in Oregon and Washington right now.
Haggen will convert all of the stores in the first half of 2015 if the deal receives approval early this 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 recent conference call.
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 the Federal Trade Commission 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.
In March 2014, Top Food and Drug closed in Federal Way, after 22 years of serving the community. At the time, Haggen employees said they were closing the store for financial reasons.
“Doing so will allow us to invest on other stores, and better position our company in today’s competitive marketplace,” said Clement Stevens, senior vice president of merchandising at Haggen, in a prepared statement.
Oliver Lazenby contributed to this report.
