Kroger and Albertsons have shared a list of nearly 600 stores they plan to sell. They hope this move will calm shoppers who are worried about how the stores' merger might affect them.
The two companies announced their plans to merge in a deal worth $24.6 billion in October 2022. This plan has faced criticism from the Federal Trade Commission and other officials.
Kroger Merger Moves Forward Amid Shopper Protests
Kroger and Albertsons, two major retailers, manage about 5,000 stores across various brands, including Safeway, Harris Teeter, and Ralphs, as The U.S. Sun revealed.
Recently, they disclosed that their upcoming divestiture would involve nearly 300 Safeway stores, 99 Albertsons stores, and several others.
Shoppers have strongly reacted on social media, asking for the merger to be halted. One shopper from Washington State expressed a heartfelt plea against the merger under a social media post listing the stores set to be sold.
This merger, considered the largest in U.S. supermarket history, is expected to reduce competition and potentially raise grocery prices for millions while affecting many workers. One concerned shopper from Washington has even promised to stop shopping at Safeway due to the impact of the merger.
In response to these concerns, a hearing is scheduled in Oregon on August 26 to discuss a temporary stop to the merger, as requested by the Federal Trade Commission. This hearing is separate from a lawsuit filed by the state of Colorado, which is moving forward after an unsuccessful attempt by the retailers to dismiss it.
Meanwhile, Supermarket News revealed that Kroger CEO Rodney McMullen expressed optimism about the potential benefits of Kroger's proposed merger with Albertsons for the whole industry.
At the Groceryshop event in Las Vegas, McMullen discussed the $24.6 billion deal and Kroger's plans to increase investment with local businesses if the merger continues.
McMullen says this merger isn't just about competing and expanding the combined businesses.
He emphasized the importance of finding solutions that benefit everyone involved rather than seeing it as a contest of winners and losers.
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Kroger and Albertsons Defend Merger Against FTC Challenge
Amid concerns that the largest supermarket merger in U.S. history could decrease competition and lead to higher prices for millions of Americans, Kroger and Albertsons are defending their proposed merger against the Federal Trade Commission's (FTC) attempt to block it.
Grocery Drive stated that the groceries claim that the FTC's concerns about reduced competition and weaker union influence are misplaced.
In separate legal responses filed this week, the grocery chains argued that the FTC is overlooking the intense competition from larger retail players like Costco, Walmart, Target, and Amazon.
The companies responded after the FTC sought a preliminary injunction to halt their merger, with a hearing scheduled in Oregon for August 26. They contend that the FTC's view is disconnected from the competitive realities of today's grocery market, which they describe as highly competitive and evolving rapidly.
Furthermore, Kroger and Albertsons refuted the FTC's concerns about the merger's potential to increase their bargaining power over unionized workers.
They argue that combining the companies would enhance local unions' negotiating position because the merged entity would still compete for labor with other grocery stores and a broad range of employers, both unionized and non-union.
The grocers also criticized the FTC's rejection of their plan to divest hundreds of stores and other assets to C&S Wholesale Grocers, challenging the commission's assessment of C&S's financial capability to compete effectively.
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