Parent company Albertsons is actively re-evaluating its store footprint following the collapse of its proposed $24.6 billion merger with Kroger. Driven by a 0.8% drop in same-store sales and shifting consumer spending, the grocer is closing underperforming and lease-expired locations while redirecting capital into higher-growth regional markets.
Confirmed 2026 Safeway Shutdowns
Albertsons has not released a master closure list, but public filings, local notices, and WARN logs confirm the following Safeway closures:
| Location | Address | Status / Date | Key Reason & Impact |
|---|---|---|---|
| Hayward, CA | 231 W. Jackson St. | Closed (Feb 2026) | Lease expired; employees offered local transfers. |
| Washington, D.C. | 1601 Maryland Ave. NE | Closed (May 16, 2026) | Operated for 40 years at Hechinger Mall; lease expired. |
| Newport, OR | 2220 N. Coast Hwy. | Closed (Late July 2026) | City’s only Safeway for 30+ years; 69 workers impacted per WARN. |
Primary Drivers Behind the Closures
Weakening Core Grocery Demand: Identical sales fell 0.8% in Q1 fiscal 2026, prompting Albertsons to lower its full-year guidance to between -0.5% and -1.5%. CEO Susan Morris addressed the trend directly during the company’s first-quarter earnings call, noting the chain continually assesses whether underperforming stores can be turned around before deciding to close them.
Post-Merger Network Audits: After freezing major real estate decisions during two years of merger litigation with Kroger, Albertsons resumed normal portfolio evaluations once the deal was blocked.
Restructuring via “ACI Edge”: Introduced in July, this strategic initiative consolidates 11 operating divisions into four regional units to centralize merchandising and slash operational costs.
Lease Expirations: Rather than outright exiting profitable regions, most 2026 shutdowns are tied to non-renewed commercial leases where store turnarounds were unviable.
Safeway vs. Other Albertsons Banners
Albertsons operates over 2,200 stores across 20+ regional brands. Closures under sibling banners, including Vons, Acme, Randalls, and Carrs in Texas, New Jersey, and California, are separate operational decisions and should not be confused with Safeway-specific numbers.
Despite individual store shutdowns, Albertsons maintains that store openings and acquisitions in expanding markets are expected to keep its overall store count net positive for the fiscal year, a point the company reiterated in its August 14 statement to USA Today, which confirmed the ongoing network review.
How to Track Local Store Status
Because store-level decisions are announced individually, the most reliable verification methods include:
- Checking local state WARN (Worker Adjustment and Retraining Notification) notices.
- Searching the official Safeway Online Store Locator.
- Monitoring local municipality press releases regarding lease expirations.
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