Albertsons has held preliminary talks to merge with Sprouts Farmers Market, according to a report from Bloomberg.
The report says discussions are at an early stage and may not led to a deal. People with knowledge of the matter asked not to be named discussing the private details.
“The talks have involved a plan to take organic grocer Sprouts private and add it to Albertson’s portfolio, which includes eponymous grocery stores and the Safeway store brand,” the Bloomberg report said.
With conventional grocers expanding their organic selections, natural grocers have felt pressure to cut prices in order to better compete with mainstream retailers. Grocers have battled food deflation in the last year and have been forced to compete more aggressively over prices.