Kroger, already the country's largest traditional supermarket operator, is expanding its reach in key southeastern and mid-Atlantic states by snapping up regional grocer Harris Teeter Supermarkets Inc.
The $2.44 billion cash deal reflects Kroger's growth plans at a time when supermarkets are fighting competition from big-box retailers such as Target Corp. and Wal-Mart Stores Inc., as well as drugstores and dollar stores that are expanding their food sections.
Harris Teeter has 212 stores in eight states. That includes locations in Delaware, Florida, Maryland and Washington, D.C., where Kroger currently does not have a presence.
Kroger says it doesn't plan to close any stores as a result of the acquisition. But in the regions where there is some overlap, it may be asked by the Federal Trade Commission to sell stores to other operators to maintain a competitive landscape, said Mike Schlotman, Kroger's chief financial officer. After Kroger's last major purchase of Fred Meyer in 1999, he said the agency asked it to sell eight stores.
Harris Teeter stores will keep their names and personalities, as with the nearly two dozen other regional chains owned by Kroger, including Ralphs in Southern California, Fred Meyer in the Pacific Northwest and Fry's in Phoenix, the company said.
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