UFCW Locals issue statement on Kroger's updated proposed divesture plan

UFCW 5, 7, 324, 400, 770 and 3000

“This bigger proposed divestiture simply increases the challenge C&S, a New Hampshire-based wholesaler, would have trying to operate a hodgepodge chain of retail stores. They have no experience operating retail stores in these states, would still lack the IT, customer loyalty and manufacturing capabilities needed, and would most likely end up monetizing the real estate under many of these stores,” said a coalition of UFCW locals (Locals 5, 7, 324, 400, 770, 1564 and 3000). These local UFCWs have been central in the coalition opposing the proposed merger from the get-go and represent over 100,000 Kroger and Albertsons workers across the nation from Washington DC and surrounding states, and California, Colorado, New Mexico, Washington state and Wyoming.

Please go to www.nogrocerymerger.com for more information in the coalition efforts to oppose the proposed Kroger and Albertsons merger.

 Contact: Tom Geiger, 206-604-3421

Update on Ongoing Efforts to Stop Mega Merger as We Build Collective Strength to Protect and Improve Grocery Store Workers' Jobs

Good News on Stopping the Proposed Mega-Merger

As you may have heard, on February 26, after a massive 16-month effort by our collective of UFCW Local unions and others, we accomplished an important goal of getting the Federal Trade Commission (FTC) to officially file a lawsuit to stop the proposed mega-merger of Kroger and Albertsons. Nine states’ Attorneys General joined that FTC legal challenge. The Attorneys General of the states of Washington and Colorado also filed separate lawsuits on January 15 and February 14, respectively.

This is very good news in our campaign to protect workers, shoppers, and the community from the negative impacts that would result if this proposed merger were allowed. But the effort to stop the merger still has a way to go.

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What's Next in This Legal Process?

The legal process will likely continue for some time until one of two things happens:

1. The Federal Judge in Portland, OR, has set a date for August 26, 2024, for the trial to begin on the FTC case. The WA and CO trials can move ahead separately, but they could be coordinated with others as well. Those trials could continue until an outcome is determined.

Or:

2. The Merger Agreement of Kroger and Albertsons has an “outside date” of mid-October 2024 (two years after when it was announced) after which the companies can simply abandon the deal without paying any financial penalty to the other party, so it is also possible that Kroger and Albertsons will simply withdraw their proposed merger.

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What’s Next for Our Grocery Store Companies?

It’s time for Kroger and Albertsons to invest in grocery store workers, our customers, and our communities instead of wasting years and billions of dollars on a failed merger proposal. These companies have been doing very well and have made billions of dollars in profit in recent years. They should be making more investments in better-staffed stores, in higher retention of workers with better pay, benefits, and training, and in lower food prices for shoppers. These investments will result in Kroger and Albertsons becoming stronger companies.

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UFCW Local Members Taking Action Together for Stronger Contracts

In addition to fighting the proposed mega-merger that would cause harm to thousands of grocery store workers and millions of customers, our collective group of local UFCWs is also taking action to affirmatively improve our contracts, organize more unionized grocery stores, and more.

• Local 400 Kroger Grocery Store members in West Virginia approve new contract with major improvements after almost going on strike.

• Local 770+324 held a Rally for Food 4 Less Workers starting Contract in Southern California. Here is a video from the event as well as local ABC 7 TV News coverage from Los Angeles.

• UFCW Local 7 and 770 Members featured in national In These Times article: “The Mega Grocery Merger That Would Pay the Price For, The Kroger-Albertsons merger is a threat to grocery workers everywhere. Let’s join the fight to stop it.”

• UFCW Local 5 members at the Kroger-owned Foods Co recently ratified a new contract that includes some major improvements including: $4.50 wage increase over term of contract for top rate, large ratification bonus, an increase in all wage progressions, and a reduced amount of time to reach the experienced rate for all purpose clerks.

• Kroger workers vote to join Local 3000 in central Washington and hold Informational Pickets in eastern Washington city of Spokane for a stronger contract. KHQ 6 TV Spokane, WA covered the action for local news.

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FAQ - Does Albertsons Need to Sell? No!

After the merger is stopped, some have said that Albertsons will just be sold to some other company. That’s just not true. Before the merger proposal, a super-majority of Albertsons’ stock was owned by six massive private equity investors who wanted to sell their shares to a single buyer. But during the past 24 months, those large investors have sold the majority of their shares in Albertsons, and we expect they will continue to sell their remaining shares on the NY Stock Exchange after the merger is blocked.

The alternative—trying to sell Albertsons in whole or in part to a different buyer—would be very unlikely. Court documents show that in the summer of 2022, there were no other bidders aside from Kroger, so a new buyer would likely offer a significantly lower value for the company. Based on Albertsons’ current stock price (which is still significantly below the Kroger buyout price), the company’s total enterprise value is approximately $20 billion, or nearly $9 million per store. To put that in perspective, the current divestiture plan to C&S Wholesale proposes to pay about half of that amount. So, selling to C&S or to anyone else at that price would destroy significant value for Albertsons shareholders. And again, the company is doing well financially, and there is no need to sell. Recent quarterly reports show Albertsons is doing even better than Kroger.

Update on Efforts to Oppose the Proposed Kroger + Albertsons Mega-Merger

Our efforts to stop the proposed mega-merger of Kroger and Albertsons reached a major milestone on Monday February 26 when the Federal Trade Commission (FTC) and nine State Attorneys General filed a lawsuit to challenge the merger. UFCW 3000 has been a national leader in opposing the proposed merger since the day it was announced in October of 2022. Since that time, we have been actively working with a core group of other UFCW locals as well as a wide range of over 150 diverse partner organizations across the nation and developed a “No Grocery Merger” coalition.
 
The effort to oppose the merger is not over yet. Kroger and Albertsons have both said they will challenge the lawsuits in court, so we expect it could be many months until an outcome is known. We will keep up the fight. And for right now we will also celebrate this major win in the struggle to protect workers, shoppers, and communities from the greed and over-reach of Kroger and Albertsons.
 
Another example of our effort to protect workers was our recent win on February 22 when we were successful in getting the Washington State Legislature to pass SB 6007 – a new law to provide protections for grocery store workers from the harm that can result when chains merge and the consequences include layoffs and store closures. 
 
For the thousands of members who have acted together – we are making a difference. The actions have included signing petitions, handing out leaflets to customers, raising our voices in local and national news stories, signing in support of our new WA law to protect workers, and so much more. And it shows that when workers and community come together and act as one, we can push back against some of the largest corporations in America.
 
Instead of spending all this time and money on a proposed merger that if allowed to proceed would lead to higher prices, closed stores, lost jobs, a reduced ability for union workers to negotiate strong contracts, and giving away billions to wealthy investors, these companies should be doing the necessary work to provide better wages and working conditions, and making stores safer.

More Detailed  Information:
On Monday February 26, 2024, the Federal Trade Commission (FTC) challenged the proposed mega-merger of Kroger and Albertsons siting concerns about how the merger would harm consumers and workers. Nine State Attorneys General (Arizona, California, District of Columbia, Illinois, Nevada, New Mexico, Oregon and Wyoming) joined the legal action as well. These are above and beyond the two other Attorneys General lawsuits from Washington and Colorado. Your support of the “No Grocery Merger” coalition is an important part of what led to this success. The 150 organizations across the nation who joined together last year to fight this merger was a show of both the power of solidarity and a diverse array of interests.

We remain committed to continue our diligent efforts to defend workers, customers and communities from the devastating harm that would be caused if such a merger were to proceed. And we also look forward to beginning to fix the broken food systems in this nation.

Additional information and past updates

1. FTC Press release: FTC Challenges Kroger’s Acquisition of Albertsons. Largest supermarket merger in U.S. history will eliminate competition and raise grocery prices for millions of Americans, while harming tens of thousands of workers, FTC alleges

2. FTC Complaint: Kroger's/Albertsons: Administrative Part 3 Complaint (Public) (ftc.gov)

3. Our press release including link to coalition partners and highlights of some of the activities over past 16 months to fight the proposed merger.

WA Attorney General files lawsuit to block Kroger-Albertsons mega merger

We have been clear and strong in our opposition to the proposed Kroger and Albertsons merger from day one. Attorney General Ferguson has been a leader in the effort to protect workers and consumers and he led the effort last year to try to stop Albertsons' $4 billion payout to wealthy shareholders. That was important. The announcement today of his lawsuit to stop the merger itself is welcome news.

 “As a grocery store worker and leader in our union, I feel very supported to have Attorney General Ferguson taking action to protect us from this bad merger proposal. Workers, shoppers and our communities need to prevent this proposed mega-merger from taking place,” - Yasmin Ashur, UFCW 3000 grocery store worker from the Albertsons in Port Orchard, WA.

Update on Proposed Kroger/Albertsons merger

To all of our members and #StopTheMerger coalition partners and allies:

We wanted to share a brief update with you on where things stand with the proposed Kroger/Albertsons merger and our collective efforts to stop this harmful deal.
 
First off, we want to clarify where things stand right now. Despiterecent news reports to the contrary,the Federal Trade Commission (FTC) does not need to make a decision this week.
 
The bottom line is this: based on the information we have now, we expect the FTC to make a decision on the proposed merger early in the new year. This is consistent both with our understanding of the process and with public statements made by FTC chair Lina Khan.
 
Once the FTC has completed its investigation of the merger deal, there are three possible outcomes:

1. The FTC can seek to stop the transaction by filing a preliminary injunction in federal court and the case will go to administrative trial. We believe our campaign has in part made this the most likely outcome and the trial will take many months to conclude.
   or

2. The FTC can enter into a negotiated consent agreement with the companies and allow the deal to go forward under certain conditions, e.g.divestitures. This is how past mergers of this kind have been treated under previous administrations, but we believe it is unlikely in this case under the Biden administration.
   or

3. The FTC closes its investigation and allows the deal to move forward unchallenged. We believe this is the least likely scenario.

Secondly, we’d like to draw your attention to some recent activities and developments:

• A new report was issued by economist MarshallSteinbaum from the University of Utah demonstrating how the deal could dampen labor power and thus lead to devastating outcomes for workers. You can download the report and view our press release highlighting it, which was picked up in a few media stories.

• This week, our union siblings at the Teamsters International union have come out against the companies’ plans to divest hundreds of stores to C&S. You can read their press release here.

• Last month, our friends at American Economic Liberties Project hosted a great virtual event on the “disaster in the making” that is this merger, featuring workers, independent grocers, farmers, and consumers that the proposed merger would directly impact. Check out the video on YouTube.

• Today, UFCW members in Southern California will meet with California Attorney General Rob Bonta and shared their stories about previous mergers in the grocery industry and their concerns with the proposed merger between Kroger and Albertsons.

Lastly, we’d like tothank all of you for being a part of this effort to protect workers and our communities from the devastating impacts of this proposed mega-merger.As always, please do not hesitate to reach out to us if you have any questions or suggestions.
 
In solidarity,
#StopTheMergerCoalition
www.nogrocerymerger.com

PRESS RELEASE: UFCW Locals 5, 7, 324, 400, 770 and 3000

Economist Report Goes Deep into Economic Analysis of Proposed Mega Grocery Store Merger and the Harms to Working Communities

A new report issued by economist Marshall Steinbaum from the University of Utah delves into the proposed mega-merger of Kroger and Albertsons in ways that have not been fully looked at over the past year. This is important information for any people involved in researching, reporting upon, or assessing the potential impacts that such a mega-merger could have.

• Marshall Steinbaum’s new research paper, utilizing a large database of posted job offers, demonstrates that the Kroger-Albertsons merger would reduce individual worker’s bargaining power as well as their union’s power.

• The paper shows that increased employer concentration has negative effects on both earnings and work hours.

• Importantly, the paper shows that union workers receive higher pay when there are two bargaining counterparties in a given labor market as opposed to when there’s only one.

The Presidents from UFCW Locals 5, 7, 324, 400, 770, and 3000 who have been leaders in the efforts to oppose the proposed merger since it was announced over a year ago provided support for the report:

“Our ability to raise wages and standards in general depends on our ability to pit these companies against one another at the bargaining table—threaten to strike one while directing customers to the other,” the presidents called out. “If these two companies were to become just one company, that power would go away and that harms workers as well as customers.”

The full report, entitled: Evaluating the Competitive Effect of the Proposed Kroger-Albertsons Merger in Labor Markets, can be found here:  https://marshallsteinbaum.org/assets/kroger_albertsons_labor.pdf

Workers across the country have experienced the impacts described in the report:

“In our most recent contract negotiations we were able to leverage one company’s fear of losing market share to their competitor and we used that to get improvements in our contract that they wouldn’t have agreed to otherwise. That helped us get historic raises that would never happen if there were just one company,” says Rachel Fournier, a Los Angeles, CA Ralphs employee.  

“I feel this merger would only bring a negative impact on the workers. Staffing, safety, and our seat at the bargaining table would all come under threat while the corporations reap the benefits from our hardship,” echoed Rena Zagala-Fondren, a Safeway worker from Los Gatos, CA.

A Seattle area worker had an additional response. “For years we have been facing reduced staffing levels in our stores – during and after COVID. Our experience is that this would only get worse if the mega merger were allowed. We need to increase staffing, improve our schedules, and increase our leverage as unionized grocery store workers, not go the other way,” said Sam Dancy, a Front-End Manager at Kroger-owned QFC store in West Seattle, WA.

Jill Young, a just-retired grocery store worker from Grand Junction, CO stated, “I started in ’86, was on strike in ’93 and ’96. Over the years I have been injured more than a couple times and had to take off six months or more to get better. The company tried to cut the leave time to one month. Having a union that was organized, and willing and able to strike was part of what kept that benefit in place. There are young workers just starting out who deserve a future with a union workplace and the leverage I have had. This proposed merger threatens that future.”

Judy Wood, a cake decorator for Albertsons in Orange, CA raised several of her concerns, “The power we have when we bargain collectively leads to improvements in stores for both workers and customers. Workers have higher wages and stores are safer now because we have the power to fix hazards that we won through our last contract bargaining session. If this merger goes through, we will lose some of that power, putting the public in a worse position.”

Benjamin Blum, a night crew employee at Thousand Oaks, CA Ralphs added his thoughts: “Our unionized workplaces have competitive wages and benefits because workers have fought for and won them. If the proposed megamerger were approved, workers will lose leverage and be more vulnerable to a single massive employer that would bully and retaliate against workers.”

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Town Hall Call Monday: Important Union Update on Kroger/Albertsons Merger

Important Union Update on Kroger/Albertsons Merger

On Friday, Kroger and Albertsons announced plans to sell at least 413 stores across the country to C&S Wholesale Grocers (C&S) as part of the mega-merger of the two companies.

Our coalition of local unions have strongly opposed the proposed merger between Kroger and Albertsons since day one. Our position has not changed because of the recent news from Kroger and Albertsons of their plans to sell some stores.

Important point right off the bat -- this sale is not happening now and it’s contingent on the overall merger being approved, a merger we are fighting. As a result, this sales deal only moves ahead if and when the federal regulators who are reviewing the overall merger approve it. We don’t think this sales deal will appease the Federal Trade Commission or the various State Attorneys General that have expressed concerns over the merger.

An additional 237 stores may also be sold to C&S as part of the deal, depending on the results of the regulatory review of the merger with the Federal Trade Commission (FTC).

The stores would not change hands unless and until the FTC approves the overall Kroger/Albertsons merger.

UFCW 3000 Telephone Town Hall Planned for Monday

We are planning a live Telephone Town Hall for our grocery store members on Monday, September 11 at 5 PM to share updated information and to address your questions. When your phone rings Monday at 5, just answer it and you will join the call. If for some reason, you don’t receive a call, you can call in to join us by dialing 1-877-365-5237 and entering meeting ID number 7585.

As of now, according to Korger and Albertsons, about ¼ of the stores to be sold to C&S, if and when the merger is completed, are in Washington state. The exact stores have not been identified at this time. There are no further details on store divestments available at this time. We will continue to keep you updated as more information becomes available. We will use every available resource to enforce our contracts with Safeway and Kroger and protect our members.

#StopTheMerger Coalition

We remain opposed to the Kroger/Albertsons merger for the negative impact it will have on our members, customers and communities. That’s why we’ve partnered with more than 100 unions and organizations nationwide in the Stop The Merger Coalition to urge the Federal Trade Commission to oppose this deal. Visit NoGroceryMerger.com to learn more and take action today.

NoGroceryMerger.com

Send a Message to the FTC

The Federal Trade Commission has the power to block this merger. Take action now by sending a message to the FTC to let them know we stand united in opposition to the Kroger/Albertsons merger.

Send a Message

Coalition of UFCW Local Unions Raise Concern and Caution About Kroger/Albertsons Divestiture Deal with C&S Wholesale Grocers

UFCW Locals 5, 7, 324, 400, 770, 1564, 3000

Des Moines, WA – Today, a coalition of United Food & Commercial Workers local unions in fourteen states and the District of Columbia representing more than 100,000 Kroger and Albertsons workers released the following statement regarding the announcement of a divestiture deal to sell hundreds of Kroger and Albertsons stores to C&S Wholesale Grocers:

“We have raised alarms about the proposed Kroger/Albertsons merger from the very beginning— from threats of store closures, higher prices and reduced competition, the harm to unionized workers’ ability to negotiate strong contracts, as well as the negative ripple effects lower union density would have on workers throughout the grocery industry. News of a possible deal with C&S to buy hundreds of stores as part of the proposed merger in no way reduces those alarms. Indeed, in many respects this announcement raises the level of concern for our members.

“Workers and shoppers have been seriously harmed by large-scale sell-offs in the past, orchestrated as part of a potential merger. It was only in 2015 that private equity-owned Haggen acquired a large number of stores as part of a divestiture scheme to appease antitrust regulators in the Albertsons/Safeway merger. It took less than a year for that company to go bankrupt and for Albertsons to pick up the very same stores it had divested for a fraction of what Haggen paid less than a year before, thus undoing the remedy to resolve antitrust concerns. Moreover, thousands of workers lost their jobs and were forced to start over. Today’s announcement of a nearly identical divestiture scheme is a troubling sign that history could repeat itself.”

The above statement can be attributed to the following UFCW local presidents:

John Nunes, UFCW Local 5 President
Kim Cordova, UFCW Local 7 President
Andrea Zinder, UFCW Local 324 President
Mark Federici, UFCW Local 400 President
Kathy Finn, UFCW Local 770 President
Greg Frazier, UFCW Local 1564 President
Faye Guenther, UFCW Local 3000 President

Contact: Tom Geiger, UFCW 3000, 206-604-3421

UFCW 3000 Member Stories: Dalton Adams

Dalton was one of many grocry members participating in the stop the merger actions across the country recently.

Dalton Adams is a shop steward at the Downtown Bellevue QFC store and is active in many parts of our union. In January of this year, he went to Olympia to talk with Washington State Legislators about the increasing safety issues he and his coworkers face around organized retail theft and strongarm robberies. The political pressure forced Kroger and other employers to come to the table and work with our union on how to best protect workers.

Safety on the job is a big issue for Dalton and other shop stewards, last fall they came together with workplace leaders from 3 states at a Safety Summit to share stories, learn, and organize to make sure that workers are safer on the job.

Dalton and other stewards are also very concerned about what would happen to their jobs and communities if the Kroger/Albertsons mega-merger was allowed to go through. He and other grocery store workers took recently action recently across the country to inform customers of the perils of this monopoly-creating merger. Dalton asked customers and send a letter to the FTC via the No Grocery Merger Website, telling them to stop this merger from moving forward.

Dalton knows when workers organize, take action, and show solidarity with each other, what we can accomplish together is greater than what we could do alone.

UFCW 3000 Member Story: Michael Tewolde

Michael talks with a customer about why the Albertsons/Kroger merger will harm the othello community in South Seattle.

Michael Tewolde is a union leader and front-end Person-in-Charge (PIC) at the Othello Safeway in South Seattle. He has worked at Othello for several years and has seen the neighborhood change as more people have moved into the new surrounding developments. Having affordable healthcare and pension plans are important to Michael and is why he was one of the hundreds of union workers at Albertsons, Safeways, Haggens, QFCs, and Fred Meyers last week who took action at the entrances to their stores to educate their customers about why a Kroger/Albertsons could mean that the Othello store could close and that prices would most likely go up.

Michael grew up in the East African nation of Eritrea and speaks Tingrinya, one of Eritrea's official languages. If you are shopping at his store, please make sure to stop by and say hello!

UFCW 3000 Members & Grocery Store Workers Across Nation to Hold Actions Opposing Kroger-Albertsons Megamerger

Coming soon to a store near you!

Leaflet Actions in Front of Kroger and Albertsons Stores “Stop The Merger – protect jobs, shoppers and access to food”

Grocery store workers from seven UFCW Local Unions – representing over 100,000 Kroger and Albertsons workers in eleven states and the District of Columbia – will hold actions in front of stores between April 4th – 13th to connect with customers about the impacts of the proposed megamerger.  Since the companies announced the proposed merger in October, workers, unions, consumer groups and others have raised the alarm about the negative impact on workers, shoppers, and suppliers such as farmers and ranchers. In mid-March a national coalition of over 100 organizations was announced with a new website: https://www.nogrocerymerger.com/

If the $24.6 billion megamerger is approved, it will drive out competition, increase food prices, create food deserts, and put up to 100,000 union jobs at risk. The growing opposition is asking the Federal Trade Commission to block the megamerger from moving forward and prevent its negative impact on both consumer and labor markets.

All the local unions include: UFCW 3000 (WA & northern ID), UFCW 400 (MD,  DC, VA, WV, OH, KY, TN), UFCW  7 (CO & WY),  UFCW 770 (Southern CA), UFCW 5 (Northern CA), and UFCW 324 (Orange County CA/Southern Los Angeles County) and  UFCW 367, South Puget Sound of Washington State.

Join Us!

As part of these actions in states across the nation. UFCW 3000 will be holding over twenty-five actions across Washington state, including the following dates, times, locations:

4/4/2023 11:00AM
Fred Meyer Port Orchard,
1900 SE Sedgwick Rd, Port Orchard, WA

4/4/2023 11:00AM
Fred Meyer Ballard,
915 NW 45Th St, Seattle, WA

4/5/2023 10:30AM
QFC 825,
2500 SW Barton St, Seattle WA

4/5/2023 11:00AM
Safeway 3317,
3355 Bethel RD Port Orchard, WA

4/5/2023 11:00AM
Safeway 414,
4301 212th St SW, Mountlake Terrace, WA

4/5/2023 11:00AM
Safeway 464,
17246 Redmond Way, Redmond, WA

4/5/2023 12:00PM
QFC 826,
15600 NE 8th St Suite K-1 Bellevue, WA

4/5/2023 1:00 PM
Haggen 3450,
2601 E Divition St, Mount Vernon, WA

4/5/2023 1:45 PM
QFC 829,
460 E North Bend Way, North Bend, WA

4/5/2023 2:00 PM
Albertsons 471,
301 Marysville Mall, Marysville, WA

4/5/2023 2:15 PM
Haggen 3436,
757 Haggen Dr, Burlington, WA 

4/5/2023 3:00 PM 18325
Fred Meyer 13,
18325 Aurora Ave. N

4/5/2023 4:00 PM
Albertsons 3412,
1128 N Miller St, Wenatchee, WA

4/5/2023 4:30 PM
Safeway 3213,
15332 Aurora Ave N Shoreline, WA

4/6/2023 12:00 PM
Albertsons 453,
4621 Sunset Blvd. NE, Renton, WA

4/6/2023 12:00 PM
Safeway 494,
152 Roosevelt Way E, Enumclaw, WA

4/6/2023 12:00 PM
Albertsons 483,
4010 A St. SE, Auburn, WA

4/6/2023 3:00 PM
Fred Meyer 172,
10201 SE 240th St., Kent, WA

4/6/2023 3:00 PM
Fred Meyer 209,
9925 State Street, Marysville, WA 

4/6/2023 4:00 PM
Safeway 252,
690 Gage Blvd, Richland, WA 

4/6/2023 4:00 PM
Albertsons 265,
6520 North Nevada St., Spokane, WA

4/6/2023 6:00 PM
Fred Meyer 101,
Wellsian Way, Richland, WA

4/7/2023 11:00 AM
Safeway 1524
1401 NE McWilliams Rd, Bremerton, WA

4/7/2023 11:00 AM
QFC Ballard,
5700 24th Ave NW, Seattle, WA

4/7/2023 11:00 AM
Safeway 1524,
1401 NE McWilliams Rd Bremerton WA 98311

4/6/2023 12:00 PM
QFC Holman Road,
9999 Holman Rd NW, Seattle, WA

4/7/2023 12:15 PM
Fred Meyer 171
5050 WA-303, Bremerton WA