Kroger and Albertsons merger faces scrutiny by Congress and FTC
America ı By Jackie Allen
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Kroger and Albertsons merger may have negatives
The National Grocer’s Association noted that the new grocery chain would have unprecedented price control power over nationwide grocery prices. That may have negative impacts on local mom-and-pop stores. “Kroger and Albertsons claim that this merger will benefit consumers — we are not convinced,” said Sumit Sharma with Consumer Reports. Sharma echoed the fear that the merger would “eliminate significant competition.” “Kroger lists Albertsons as its main competitor in five out of its top 10 markets that cover 546 of the Ohio-based chain’s stores,” Sharma explained. “Our commitments are to lower prices starting Day 1, continue investing in our associates and stores, and do more in our communities than either of us can do alone,” Kroger CEO Rodney McMullen said. To counter the critics, the companies are planning to divest some stores. And Albertsons said it was ready to spin off a standalone unit to its shareholders immediately before the deal's close. Despite the fear surrounding grocery price increases, executives for Kroger and Albertsons insist the deal would allow shoppers to save money in addition to allowing the newly combined supermarket to keep up with competitors like Amazon and Walmart.
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