BELLINGHAM, Wash. — The Washington State Attorney General’s Office (AG) Antitrust Division announced Tuesday, June 25th, that Albertsons has removed a land use restriction that had prevented other grocery businesses from being located at a former Albertsons location on Northwest Avenue.
The AG opened an investigation into the property restrictions to determine whether they violate Washington antitrust laws.
Albertsons removed the restrictions as a result of the investigation according to the AG’s announcement. Albertsons must also pay $25,000 to defray the costs of the investigation.
As a result of Albertson’s conduct in the largely low-income Bellingham neighborhood, the City of Bellingham later banned these types of property restrictions related to grocery stores, but could not apply its new ordinance retroactively. The property has been sold twice since Albertsons closed its store, but the restrictions imposed by Albertsons still barred a grocery store from moving into the development through 2038, leaving thousands of residents without a full-service supermarket within reasonable walking distance.
By creating these illegal restrictions, Albertsons ensured that a competitor could not open a grocery store in this neighborhood. Shoppers had no choice but to travel to other stores farther away, including a Haggen the company owned a few miles away.
This effectively created a food desert in the neighborhood, defined as an area with limited access to affordable and nutritious food.
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The Birchwood Albertsons was located in a development in which all the owners agreed — back in 1982 — that only Albertsons’ parcel could sell groceries. For years, Albertsons’ presence benefited the entire development by bringing in regular customers. But Albertsons closed the Birchwood store in 2016, after it acquired a nearby Haggen store.
– Washington State Attorney General’s Office (June 25, 2024)
Kroger (owns QFC and Fred Meyer) and Albertsons (owns Safeway and Haggen) announced a proposed merger after this investigation was started according to the AG. In January, the AG filed a lawsuit to block the merger saying it would severely limit shopping options.
Kroger and Albertsons are reportedly the 2 largest supermarket chains in Washington and the second and fourth largest supermarket operators in the country.
