Attorney General Bob Ferguson announced today that Albertsons has removed illegal land use restrictions that had created a food desert in Bellingham’s Birchwood neighborhood since 2018. These restrictions barred any grocery store from occupying its former location, leaving residents without a full-service supermarket within reasonable walking distance.
The City of Bellingham later banned such property restrictions related to grocery stores, but could not apply the ordinance retroactively. The property has been sold twice since Albertsons closed its store, but the imposed restrictions remained until now, ensuring no competitor could open a grocery store in the area. Consequently, shoppers had to travel farther to other stores, including a Haggen owned by Albertsons.
Ferguson initiated an investigation into whether these property restrictions violated Washington’s antitrust laws. As a result of this probe, Albertsons lifted the restrictions and agreed to pay $25,000 to defray the costs of the Attorney General’s investigation.
“Access to fresh groceries is essential for every neighborhood,” Ferguson stated. “In a neighborhood like Birchwood, many residents may have less access to transportation or may be elderly or disabled. Albertsons forced the residents of Birchwood to walk farther for groceries so it could reduce competition for its own grocery store nearby. My legal team will continue to stand up to antitrust violations that create food deserts that harm Washington families.”
Albertsons initially closed its Birchwood store in 2016 after acquiring a nearby Haggen store and subsequently sold the Birchwood property in 2018 with restrictive covenants limiting food sales at that location. This agreement was extended even when the property was resold in 2021.
Following Ferguson's investigation—initiated before Kroger and Albertsons announced their proposed merger—Albertsons relinquished these land use restrictions. A supermarket can now potentially open at the former site, offering hope for improved access to groceries for local residents.
Assistant Attorneys General Travis Kennedy, Valerie Balch, Paula Pera; Paralegal Kimberly Hitchcock; and Legal Assistants Grace Monastrial, Keriann Snider, and Debbie Chase managed the case on behalf of Washington State.
In January 2024, Ferguson filed a lawsuit aiming to block a proposed merger between Albertsons and Kroger on grounds that it would limit consumer choices and eliminate vital competition necessary for keeping grocery prices low. Together, Kroger and Albertsons are major players in both state and national markets with significant revenue and employee numbers.
Ferguson argues that despite proposals from Kroger and Albertsons to sell off more than 100 stores in Washington as part of their merger plan, Kroger would still hold near-monopoly power in several markets across the state. He also suggests this divestiture strategy might lead many supermarkets to fail due to their transferal primarily being aimed at wholesale suppliers.
The Seattle Times reported that more than half of households in Seattle metro area shop at stores owned by either company. In April 2024, Ferguson successfully opposed an attempt by these companies to dismiss his lawsuit; the trial is scheduled for September 16th in King County Superior Court.
Washington’s Antitrust Division under the Office of the Attorney General enforces antitrust provisions under Washington's Unfair Business Practices-Consumer Protection Act by investigating complaints about anti-competitive conduct and reviewing mergers for potential competitive issues.
For more information about filing an antitrust complaint visit https://fortress.wa.gov/atg/formhandler/ago/AntitrustComplaint.aspx.