Albertsons and Safeway Store Closures 2026: Everything You Need to Know

The Grocery Shake-up: Understanding the Albertsons and Safeway Store Closures in 2026

The American grocery landscape is undergoing a significant transformation. If you’ve noticed your local Safeway shuttering its doors, you aren’t alone. The news of Albertsons Safeway store closures 2026 has sent ripples through the retail industry, leaving many shoppers and employees wondering what exactly is happening behind the scenes.

At the heart of this shift is a strategic reassessment by Albertsons Companies, the parent organization of several major banners including Safeway, Vons, and Jewel-Osco. But why is this happening now?

The Domino Effect: The Collapsed Kroger Merger

The catalyst for these closures is the fallout from one of the biggest attempted deals in retail history. For years, Albertsons and Kroger sought to merge in a massive $24.6 billion transaction that would have created a grocery behemoth.

However, the Federal Trade Commission (FTC) stepped in to block the merger, arguing that such a consolidation would stifle competition, lead to higher prices for consumers, and diminish bargaining power for grocery workers. When the U.S. District Court granted the injunction in late 2024, the deal collapsed, leaving Albertsons to pivot its strategy quickly.

By the Numbers: A Shrinking Footprint

With the merger off the table, Albertsons has resumed its “portfolio optimization”—a corporate term for closing underperforming stores and focusing on high-growth areas. The data shows a sharp increase in closures:

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• Fiscal 2023: 8 stores closed.
• Fiscal 2024: 10 stores closed.
• Fiscal 2025: 35 stores closed (more than triple the previous year).

These closures have had a tangible impact on the company’s bottom line, reducing fiscal 2025 sales by approximately $63.4 million, while costs related to surplus properties and closures climbed to $45.1 million.

Which Stores are Affected?

While Albertsons has not released a comprehensive master list of all planned closures for 2026, several Safeway locations have already been identified as closed or slated for closure, including:

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• Hayward, California: 231 W. Jackson St.
• Newport, Oregon: 2220 N. Coast Highway.
• Washington, D.C.: 1601 Maryland Ave.

For the thousands of employees affected, the company has stated it is working to relocate as many staff members as possible to other nearby locations to minimize job losses.

Looking Forward: Investment and Digital Growth

Despite the headlines regarding store closures, it is not all bad news for the company. Albertsons is simultaneously investing heavily in the future of shopping. In fiscal 2025, the company spent roughly $1.83 billion in capital expenditures, which included:

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• 94 Store Remodels: Modernizing existing locations to improve the customer experience.
• 9 New Openings: Expanding into regions with high long-term demand.
• Tech Integration: Heavy investment in digital platforms to compete with e-commerce giants.

Final Thoughts

The Albertsons Safeway store closures 2026 are a symptom of a volatile retail market and a high-stakes legal battle. As the company navigates the aftermath of the failed Kroger merger, consumers can expect a more streamlined, tech-focused grocery experience—though it may mean driving a little further to find your favorite Safeway.