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Safeway Is Closing More Stores in 2026 After the Kroger Deal Collapsed (Is Yours One?)

Safeway is closing more stores in 2026 as Albertsons reshapes its footprint

By Alex Andonovska , Edited by Sara Albertelli

Updated Sept. 10, 2026

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If you are a Safeway regular, you might need to start looking for a backup grocery store. The Albertsons-owned chain is closing more locations in 2026, and your ZIP code could be on the chopping block.

Albertsons Companies said in an Aug. 14 statement that it expects to close more locations as it reshapes its store network following the failed $24.6 billion merger with Kroger two years ago.

The company had slowed potential store-network changes while the deal was pending, then resumed evaluating its locations after the merger was blocked and ultimately fell apart.

Does that mean your local Safeway is doomed? Albertsons hasn't released a full list of planned closures, but several Safeway stores have already closed this year.

Here's what we know so far.

Why did the merger between Albertsons and Kroger collapse?

The two retail giants announced the merger in October 2022, with Kroger offering about $24.6 billion to acquire Albertsons. The proposed merger would have resulted in a combined total of 4,996 stores, 710,000 associates, 3,972 pharmacies, 2,015 fuel centers, 66 distribution centers, and 52 manufacturing plants.

The Federal Trade Commission sued to block the deal, arguing that the combination could reduce competition, increase grocery costs, and hurt consumers and grocery workers.

A federal judge blocked the merger in December 2024, and the deal ultimately fell apart.

While the transaction was pending, Albertsons said it had slowed its potential "portfolio optimization." With the merger no longer hanging over the company, Albertsons resumed reviewing its stores. That has meant closing some locations while continuing to invest in others.

The court fight also created uncertainty around Albertsons' store plans. The company had proposed selling 579 stores to C&S Wholesale Grocers as part of the merger agreement, but that plan disappeared when the transaction was blocked.

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How many locations did Albertsons close last year?

The number of Albertsons-owned stores closing has picked up recently, with 35 stores in fiscal 2025 calling it quits, more than three times the 10 it closed in fiscal 2024 and up from eight in fiscal 2023.

When it wasn't slashing locations from the map, the company invested in new locations, opening nine new stores and completing 94 remodels during fiscal 2025.

The reshuffling has continued into fiscal 2026. Over four months, Albertsons closed 10 stores, opened four, and acquired two more. As of June 20, 2026, it had 2,240 stores across 35 states and Washington, D.C.

Albertsons operates 21 grocery banners, including Albertsons, Vons, Jewel-Osco, ACME, Shaw's, and Tom Thumb. Safeway remains one of Albertsons' largest banners, with stores concentrated in states including California, Washington, Oregon, Arizona, Colorado, Maryland, Virginia, and Washington, D.C. That makes individual store decisions part of a much larger effort to manage where and how the company operates.

Which Safeway stores are closing in 2026?

While there is no complete public list of Safeway stores that Albertsons plans to close, a couple of news outlets identified the following locations:

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

Is Albertsons abandoning Safeway?

Albertsons continues to open stores and remodel existing locations while closing others. That's consistent with a company trying to change its footprint rather than walk away from certain markets.

The company spent about $1.83 billion on capital expenditures in fiscal 2025, including store remodels, new locations, and investments in digital and technology. It completed 94 remodels and opened nine stores during the year.

What happens to Safeway employees when a store closes?

Albertsons has said it is working to place as many affected employees as possible at other stores.

The exact outcome depends on the location, available positions, and any applicable union agreements.

How can I find out if my Safeway is closing?

If you're worried about your local store, watch for announcements from Safeway or Albertsons, local news reports, and notices from the store itself. You can also contact your local Safeway directly.

And be careful about treating an online list as official unless it can be traced back to Albertsons or a reliable local source.

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Bottom line

For now, there's no reliable way to tell whether your Safeway is next unless Albertsons or a credible local source has specifically announced it. Albertsons is closing some stores, opening others, and spending money to remodel existing locations.

If your local Safeway does close, you'll have to find a new place for your regular grocery run, and a little comparison shopping could help you save on groceries once you make the switch.

FAQs

What should I do with unused Safeway gift cards if my local store closes?

Safeway gift cards can generally be used at other participating Albertsons-owned stores, but acceptance may vary by banner and location. Check the card's terms or contact customer service before visiting another store.

What happens to prescriptions when a Safeway pharmacy closes?

Customers are typically notified about where their prescriptions will be transferred. Contact the pharmacy promptly if you would rather move them to a different provider, especially if you take medications that require regular refills.

Do closing Safeway stores offer liquidation discounts?

Some locations may discount merchandise as their closing date approaches, but markdowns are not guaranteed and may exclude alcohol, pharmacy products, gift cards, or other regulated items. Check signs in the store for location-specific terms.

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