CHICAGO, July 1, 2026 - Kroger on Wednesday announced its plan to acquire regional grocer Giant Eagle for $1.65 billion.
The proposed deal comes about 18 months after Kroger’s $24.6 billion merger with rival Albertsons fell through.
Kroger CEO Greg Foran, who became chief executive of the Cincinnati-based retailer in February, called the Giant Eagle acquisition a clear “strategic fit” for Kroger.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Foran said in a statement. “Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.”
Pittsburgh-based Giant Eagle currently operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virgina, Maryland and Indiana. Kroger said it expects to be forced to make “limited” Giant Eagle divestitures to satisfy regulatory requirements before the deal is allowed to close, likely in 2027.
Kroger, the country’s largest traditional grocery retailer and No. 2 behind Walmart in annual sales, operates more than 1,220 grocery stores in 16 states under nearly two dozen regional banners, including Mariano’s, Ralphs, Fred Meyer, King Soopers, Harris Teeter and more.
Kroger’s stock price dipped about 7% in early morning trading Wednesday on the acquisition news.
Until last year, Giant Eagle owned about 270 GetGo Café + Markets convenience stores. But it sold that chain to c-store giant Alimentation Couche-Tard in a $1.6 billion deal.
Kroger’s Giant Eagle acquisition, which has been unanimously approved by its board of directors, includes $1.25 billion in cash and the assumption of about $400 million in liabilities. Giant Eagle logs about $9 billion in annual sales, the companies said.
Both grocers have robust retail foodservice programs.
Kroger said it sees growth opportunities by combining its ecommerce solutions, data and personalization capabilities with Giant Eagle’s established store base, loyalty program, pharmacy business and private-label portfolio.
Given its scale, this transaction likely won’t face the same regulatory hurdles as Kroger’s failed merger with Albertsons. That deal, first announced in October 2022, became a regulatory rollercoaster that ended up being officially killed after both federal and state courts nixed the merger. Kroger and Albertsons have continued to fight it out in court, lobbing accusations against each other stemming from the contentious deal.
Heather Lalley is the director of communications for IFMA The Food Away from Home Association. A lifelong journalist, Lalley has previously worked with industry publications including Restaurant Business, CSP Daily News, Supermarket News and Foodservice Director.