MONTANA STATE - Montana’s vast landscape is seeing a major shift in how its residents stock their pantries. For decades, the "Big Sky Country" has relied on a few key pillars for groceries—chief among them the Albertsons and Safeway banners. However, the spring of 2026 is bringing a wave of "portfolio optimization" that is leaving some Treasure State communities with fewer choices.From the Gallatin Valley to the Hi-Line, here are the three major supermarket chains scaling back or shifting their Montana footprint this March.
1. Albertsons & Safeway: The Independent Realignment
Following the high-profile collapse of the Kroger-Albertsons merger late last year, Albertsons (which owns the Safeway brand in Montana) has returned to life as a standalone company with a point to prove. To remain competitive, the Boise-based giant is aggressively "trimming the fat" of its older, less efficient stores.
- The Montana Impact: While Montana was originally slated to lose only a couple of stores to divestiture under the merger plan, the "Independent Realignment" of 2026 is proving more surgical. The company is prioritizing its high-traffic "Market Street" concepts and closing aging Safeway and Albertsons storefronts in towns where operational costs (like heating and long-haul logistics) are eating into margins.
- The Trend: If your local store has an outdated layout and hasn't seen a remodel in fifteen years, it is likely on the watch list for a Spring 2026 lease exit.
2. Smith’s & Fred Meyer (Kroger): The 60-Store Cut
Kroger—operating in Montana primarily under the Smith’s Food and Drug and Fred Meyer banners—confirmed early in 2026 that it would shutter approximately 60 underperforming supermarkets across the country by the end of the year.
- The Montana Impact: Montana has historically been a strong market for Smith's, particularly in cities like Bozeman, Helena, and Great Falls. However, as part of this national "streamlining," several older Smith’s locations that lack the infrastructure for massive "ClickList" digital fulfillment are being targeted.
- Why Now? Leadership has stated that these closures provide a "modest financial benefit" that will be reinvested into upgrading the remaining stores with AI-driven pricing and better fresh-produce sections to appeal to health-conscious "GLP-1" shoppers.
3. Walmart: The "Digital-First" Departure
Walmart remains the dominant force in Montana grocery, but its strategy is shifting away from physical expansion toward digital dominance. As the company continues to roll out its "Store of the Future" concept, older secondary locations are being re-evaluated.
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The Montana Impact: While the massive Supercenters in Billings and Missoula are safe, smaller footprints and older units are under pressure. This March, the company is looking at "redundant" stores where a nearby Supercenter can handle the volume via its improved "InHome" delivery and curbside pickup services.
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The Logic: Walmart is betting that Montanans would rather have their groceries delivered to their door than walk through a store that doesn't offer the full "Supercenter" experience.
What This Means for Montanans
For those in more rural counties, a grocery closure isn't just an inconvenience—it’s a challenge to food access. However, the 2026 shakeup is also making room for new players:
- Rise of Local Discounters: With the big chains pulling back, local independent grocers and regional players are seeing a "back-to-basics" surge as shoppers look for shorter ingredient lists and local trust.
- Digital Delivery Expansion: Even in the most remote areas, the focus is shifting to omnichannel shopping. If a physical store closes this spring, expect the brand to offer aggressive discounts on their delivery apps to keep you in their ecosystem.
- The "Market Street" Evolution: The stores that stay open are becoming more experience-driven, featuring more "grab-and-go" meals and protein-forward sections.
