Safeway Closes Stores in 2026 Amid Albertsons Downsizing

Safeway is continuing its store closures in 2026, a trend initiated by its parent company, Albertsons, which has already led to the shutdown of dozens of locations across various banners. Safeway, which operates over 900 stores primarily in the western United States and parts of Maryland and Virginia, is part of a larger portfolio of more than 20 grocery brands owned by Albertsons. In 2025, Albertsons closed at least 30 stores under banners including Carrs, Albertsons, and United Supermarkets, and this pace has continued into 2026. Albertsons has stated that its network strategy involves opening new stores in high-demand areas while also making the "difficult decision to close some locations," aiming to reassign affected associates to other stores. The specific banners and locations most impacted by these ongoing footprint reviews remain unclear, given the extensive number of brands and states Albertsons operates within, which include Vons, Jewel-Osco, and Shaw's, among others. These closures follow the failed $24.6 billion merger attempt between Albertsons and Kroger, which was blocked by regulators in 2024. Since the merger's collapse, Albertsons has pivoted from expansion to streamlining its existing operations. In contrast, Kroger has pursued other acquisitions, agreeing to purchase regional chain Giant Eagle this year. A significant driver for many of the Safeway closures is the expiration of leases, rather than a strategic withdrawal from entire markets. For instance, in Washington, D.C., Safeway closed its Hechinger Mall location on May 16, 2026, after nearly 40 years of operation, citing the end of its lease and a decision to reinvest resources into other existing stores. Similarly, in California's Bay Area, Safeway closed its Hayward location on Jackson Street in late February. In Oregon, the chain's sole store in Nehalem also closed. These specific lease-driven closures highlight a pattern of optimizing real estate and operational efficiency across the Albertsons network as the company navigates a post-merger landscape and focuses on consolidating its market presence through strategic store management and targeted investments in more profitable or high-potential locations.