City Market
City Market is a Kroger-owned supermarket chain serving communities primarily in western Colorado.
Last updated August 31, 2026
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Overview
City Market is a regional supermarket brand operating in the Rocky Mountain region of the United States, with its present-day store base concentrated in Colorado. The chain is headquartered in Grand Junction and is part of The Kroger Co., one of the largest supermarket operators in the country. City Market functions as a local-market grocery banner rather than as an independently listed company: its stores sell everyday food and household necessities and operate within Kroger's broader corporate, supply-chain, loyalty, and merchandising systems. The brand's origins are associated with Josef Pruenster, an Austrian immigrant who came to the United States in 1873. After spending time in Cincinnati, Pruenster settled in La Junta, Colorado, where he first operated a slaughterhouse and later expanded into a meat shop and grocery business using the City Market name. His family became involved in the enterprise, and four of his sons—Paul, Frank, Leo, and Clarence Prinster—eventually developed the business into a supermarket chain. Paul Prinster moved to Grand Junction in 1924. After working at a Piggly Wiggly store, he acquired an interest in another Fourth Street grocery operating under the City Market name. His brothers later joined him, and the Prinster family obtained full control of the store. In 1939, the brothers opened a larger, modern supermarket near Fourth Street and Rood Avenue in Grand Junction. This store provided the platform for the company's postwar expansion. After the Second World War, City Market extended its presence through western Colorado, including communities such as Montrose and Delta, and also entered New Mexico, Utah, and Wyoming. The chain's expansion reflected the role of regional supermarkets in supplying growing towns across the Rocky Mountain West. Over time, the brand remained associated with community-based grocery retail while becoming part of a larger corporate supermarket structure. Dillon Companies acquired City Market in 1969. This placed City Market within the same corporate family as King Soopers, another major Colorado grocery banner. In 1999, Dillon Companies merged with Kroger, bringing City Market into The Kroger Co. The brand continued to operate under its established name rather than being converted into the Kroger banner, preserving its regional identity. The chain later reduced its geographic footprint. Its former store in Shiprock, New Mexico, located on the Navajo Reservation, was sold to Arizona-based Bashas' in 2022. According to the cited Wikipedia reference, Kroger operated 32 City Market stores across 27 Colorado cities as of 2025. The brand's current proposition centers on conventional supermarket shopping, including fresh food, packaged groceries, meat, produce, dairy, bakery items, deli products, beverages, and household staples. Specific store assortments and services can vary by location. City Market received national attention during the 2024 federal litigation over Kroger's proposed acquisition of Albertsons. Testimony in the case discussed pricing at eight Colorado City Market stores that had comparatively little nearby competition. The episode linked a local regional banner to broader questions about supermarket competition, pricing practices, and the consequences of consolidation in the American grocery industry. A federal judge ultimately blocked the Kroger-Albertsons transaction. City Market remains an active Kroger subsidiary, with its publicly documented operations focused primarily on Colorado.
History
City Market developed from a family grocery business founded by Josef Pruenster, an Austrian immigrant who arrived in the United States in 1873. After living and working in Cincinnati, Pruenster moved to La Junta, Colorado. There he established a slaughterhouse and subsequently expanded into a meat shop and grocery store trading under the City Market name. His children participated in the operation, creating the family base from which the later supermarket company emerged. In 1924, Pruenster's eldest son, Paul Prinster, moved to Grand Junction. He first worked in a Piggly Wiggly grocery store and then purchased an interest in a separate Fourth Street grocery that also used the City Market name. His brothers Frank, Leo, and Clarence later joined him. The four brothers eventually acquired complete ownership and began building a larger regional enterprise. A major early expansion step came in 1939, when the Prinster brothers opened a modern supermarket near the intersection of Fourth Street and Rood Avenue in Grand Junction. The new store helped establish the operating model and local presence that supported later growth. Following the Second World War, City Market expanded across western Colorado, opening or acquiring stores in communities including Montrose and Delta. The chain also entered markets in New Mexico, Utah, and Wyoming, becoming a recognizable regional grocery operator across parts of the Rocky Mountain West. City Market's independent family ownership ended in 1969, when Dillon Companies acquired the business. The transaction placed City Market alongside King Soopers, another Colorado supermarket chain associated with Dillon. Both brands retained distinct identities while operating within the same broader corporate structure. In 1999, Dillon Companies merged with The Kroger Co., making City Market a Kroger subsidiary. Under Kroger ownership, City Market continued as a regional banner rather than being rebranded nationally. Its stores provide conventional supermarket services and sell fresh food, packaged groceries, meat, produce, dairy, bakery and deli items, beverages, frozen products, and household goods. The chain's corporate systems are connected to Kroger, while its customer-facing identity remains tied to the communities in which City Market stores operate. The company later exited at least one out-of-state location. Its Shiprock, New Mexico, store, situated on the Navajo Reservation, was sold to Bashas' in 2022. By 2025, the cited reference described City Market as having 32 stores in 27 Colorado cities, indicating that Colorado had become the brand's principal operating market. The chain became relevant to national antitrust debate in 2024, when Kroger sought to acquire Albertsons. During the federal trial, Kroger executives acknowledged that eight City Market stores had increased prices in circumstances involving limited competition, with testimony characterizing the effect on the business as limited. The court ultimately blocked the Kroger-Albertsons merger. This litigation placed a historically regional supermarket banner at the center of a wider debate about grocery-market concentration, local competition, and retailer pricing. City Market remains active as a Kroger-owned Colorado supermarket brand.
- 2024
Kroger-Albertsons merger blocked
[1]A federal judge blocked Kroger's proposed acquisition of Albertsons. City Market pricing testimony formed part of the trial record.
- 2022
Shiprock store sold to Bashas'
[1]City Market sold its former Shiprock, New Mexico, location to Bashas'.
- 1999
City Market becomes part of Kroger
[1]Dillon Companies merged with The Kroger Co., bringing City Market into Kroger's supermarket portfolio.
- 1969
Acquisition by Dillon Companies
[1]Dillon Companies acquired City Market, making it a sister banner to King Soopers.
- 1939
Modern Grand Junction supermarket opens
[1]The Prinster brothers opened a larger supermarket near Fourth Street and Rood Avenue in Grand Junction, establishing a base for later regional expansion.
- 1924
Paul Prinster establishes the Grand Junction connection
[1]Paul Prinster moved to Grand Junction, worked at a Piggly Wiggly store, and acquired an interest in a Fourth Street grocery operating as City Market.
- 1873
Josef Pruenster arrives in the United States
[1]Austrian immigrant Josef Pruenster arrived in the United States. He later settled in Colorado and established the family grocery business associated with the City Market name.
Products and positioning
A community-oriented regional supermarket brand within Kroger's national grocery portfolio, serving Rocky Mountain communities with full-line food and household shopping.
Fresh grocery
Fresh food departments
City Market's conventional supermarket format includes fresh produce, meat, seafood, dairy, eggs, bakery goods, deli products, and prepared foods. These departments support routine household shopping and provide the principal fresh-food offer associated with the banner.
Packaged food
Packaged grocery and frozen foods
Stores carry shelf-stable groceries, snacks, canned and boxed foods, frozen products, beverages, and other packaged food categories. Assortment depth can differ according to store size and local demand.
Household goods
Household essentials
The supermarket assortment also includes everyday non-food necessities such as cleaning supplies, paper goods, and other household essentials, allowing customers to combine food shopping with basic home-supply purchases.
Brand decisions
2024
Participation in Kroger-Albertsons merger litigationM&ABackground
Kroger's proposed acquisition of Albertsons was reviewed in federal court amid concerns about grocery-market competition. Trial testimony addressed pricing at eight City Market stores with limited nearby competition.
Action taken
Kroger defended its proposed transaction in court, while a federal judge ultimately blocked the merger.
Aftermath
The case intensified scrutiny of supermarket consolidation and drew attention to pricing practices at regional Kroger banners, including City Market.
2022
Exit from the Shiprock, New Mexico, locationStrategyBackground
City Market operated a store in Shiprock, New Mexico, on the Navajo Reservation, outside its principal Colorado market.
Action taken
The store was sold to Arizona-based Bashas'.
Aftermath
The transaction reduced City Market's out-of-state presence and left Colorado as the brand's primary documented market.
Sources1 sources
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