Safeway is shutting down more locations as its parent company, Albertsons Companies, reevaluates its retail presence. The chain paused its store optimization efforts while the proposed $24.6 billion merger with Kroger was pending, but resumed the process after the deal fell through.
Albertsons told USA Today that the company is opening stores in areas with long-term demand while making the difficult decision to close other sites.
The broader corporate strategy has led to a significant increase in store closures. During fiscal 2025, the company closed 35 stores, a figure that is more than triple the 10 locations shut down the previous year and up from eight in fiscal 2023. This data comes from Albertsons’ latest annual filing.
In the same period, the company opened nine new stores and ended the year with 2,244 locations across 35 states and Washington, D.C.
These changes have had a measurable financial impact. Store closures, net of new openings, reduced fiscal 2025 sales by $63.4 million. Additionally, costs associated with closed stores and surplus properties rose to $45.1 million, up from $15.9 million a year earlier.
Despite these expenses, Albertsons continued investing in its existing base, completing 94 remodels and opening nine new stores as part of approximately $1.83 billion in capital expenditures. This spending also included investments in digital and technology platforms.
Albertsons operates 22 grocery banners, including Safeway, Vons, Jewel-Osco, ACME, Shaw’s, and Tom Thumb. The company employed approximately 280,000 workers as of Feb. 28, 2026. The company did not provide USA Today with a full list of planned Safeway closures.
However, the outlet reported that Safeway locations that have closed in 2026 include stores at 231 W. Jackson St. in Hayward, California; 2220 N. Coast Highway in Newport, Oregon; and 1601 Maryland Ave. in Washington, D.C.
