Migliaccio & Rathod LLP is investigating Albertsons Companies, Inc., one of the largest national grocery chains, for allegedly enforcing an anticompetitive deed restriction that limited access to affordable food in the Birchwood neighborhood of Bellingham, Washington, contributing to the area’s designation as a food desert.
Albertsons Accused of Restricting Grocery Competition in Low-Income Neighborhood
According to the Washington State Attorney General’s Office, led by Attorney General Bob Ferguson, Albertsons:
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Closed its Birchwood grocery store in 2016;
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Sold the property in 2018 with a deed restriction that prohibited any competing grocery store from operating on the site until 2038;
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Embedded this restriction into the property deed, making it binding for all future property owners.
This move allegedly blocked other grocery retailers from serving the Birchwood area for two decades, limiting food access for low-income, elderly, and disabled residents.
Impact on Bellingham’s Birchwood Neighborhood: A Manufactured Food Desert
The deed restriction contributed to Birchwood being classified as a federally recognized food desert, where residents had limited access to affordable and nutritious food. Many were forced to travel long distances, sometimes to a Haggen store also owned by Albertsons—to buy groceries, raising concerns about corporate control of food access.
Legal Resolution Reached in June 2024
On June 25, 2024, the Washington Attorney General announced a resolution:
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Albertsons agreed to remove the deed restriction, allowing for the return of a full-service grocery store to the Birchwood location;
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Paid $25,000 to cover the cost of the Attorney General’s investigation;
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Did not admit wrongdoing, but fully complied with the terms of the resolution.
This case highlights growing scrutiny of anticompetitive real estate practices that harm local communities and restrict consumer access to basic necessities.
Were You Affected by the Closure of Albertsons in Birchwood?
If you:
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Lived in the Birchwood neighborhood and experienced reduced access to groceries;
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Operated or attempted to open a grocery business in Bellingham and were affected by restrictive property terms;
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Or believe your community was harmed by similar anticompetitive real estate agreements—
—you may have a legal claim.
Fill out the form on this page, email us at [email protected], or call (202) 470-3520 for a free and confidential consultation.