Joining the regional chain power list

Welcome to the big leagues, Haggen Food & Pharmacy.

(Click here to view the full report.)



In a transformative and bold stroke, the owners of Bellingham, Wash.-based Haggen Inc. bought a big chunk of former Albertsons and Safeway stores in the western United States early this year, vastly expanding the chain’s size and reach. The buyout also vaulted the company into the ranks of top U.S. pharmacy retailers for the first time in its 82-year history.



Haggen’s aggressive expansion was triggered by the Albertsons and Safeway merger, and a ruling by the Federal Trade Commission that the two companies shed a significant number of stores to complete the merger. As part of the divestment process, Haggen is buying and converting 146 of those stores operating under the Albertsons, Safeway, Pavilions and Vons brands.



“With this acquisition, Haggen will expand from 18 stores with 16 pharmacies to 164 stores with 106 pharmacies; from 2,000 employees to more than 10,000 employees; and from a Pacific Northwest company with locations in Oregon and Washington to a major regional grocery chain with locations in Washington, Oregon, California, Nevada and Arizona,” Haggen reported on Feb. 11.



Haggen chairman John Caple called the deal a “momentous acquisition” and “a once-in-a-lifetime opportunity to rapidly expand the Haggen brand across the West Coast.”



The takeover and store conversion process will be complete by mid-2015. “Each week, between one and 12 stores will be converted,” Haggen spokeswoman Deborah Pleva reported.



“We’re excited about the changes we’re making to enhance these stores with more locally sourced food offerings, genuine service and homemade quality,” said Bill Shaner, CEO of Haggen’s new Pacific Southwest division.



Other services include wine tastings and nutritional education programs.