Kroger, the nation’s largest grocery chain, is in talks to buy Safeway, the nation’s second-largest grocery chain, according to a report in The Wall Street Journal.
The deal, which is still in the early stages and could fall apart, would be a transformative acquisition for Kroger and would continue a consolidation wave sweeping the grocery industry.
Safeway has about 1,600 stores and generated $35.1 billion in sales in 2012. Kroger has about 2,600 stores and generated $96 billion in sales last year.
The two companies declined to comment on the report.
If completed, the deal would be the latest in a series of acquisitions by Kroger as it looks to broaden its reach and become more competitive with Walmart, the world’s largest retailer.
In May, Kroger completed its $2.5 billion purchase of Harris Teeter Supermarkets Inc., a move that added more than 200 stores in high-growth markets like Charlotte, N.C., and Raleigh-Durham, N.
Kroger has also made smaller acquisitions in recent years, including a deal last year to buy Younkers department store chain from Bon-Ton Stores Inc. for $1 million.
Safeway has also been active on the acquisition front in recent years. In March 2012, it completed its $6.8 billion purchase of supermarket operator Albertsons Inc., which gave it control of about 2,400 stores nationwide.
