Kroger newspaper find the rabbit6/2/2023 ![]() “With Aldi, Lidl and other discount grocers coming in, this positions Kroger to drive the market forward.”īut supermarket mergers can also lead to higher prices for shoppers.Ī 2012 study published in the Journal of Economics and Management Strategy found that “mergers in the supermarket industry can result in significant increases in consumer prices and thereby harm consumers” in highly concentrated markets. “This deal could provide some food pricing relief for consumers,” said Ken Fenyo, a retail analyst at Coresight Research. Grocery store prices aren't coming down anytime soon (Photo by Ting Shen/Xinhua via Getty Images) Ting Shen/Xinhua/Getty Images People shop at a local supermarket in Washington, D.C., the United States, Sept. “Our expanded portfolio, along with more personalized promotions and benefits, will help customers save… and help to relieve the inflationary pressures facing shoppers across the country,” Kroger CEO Rodney McMullen said Friday.Īlbertsons stores are concentrated more on the West Coast, while Kroger is dominant in the Midwest.Īlbertsons has higher prices than Kroger and other grocers, analysts say, and they predict Kroger will try to reduce Albertsons prices to be more competitive against discount chains like Aldi. They will also invest $1.3 billion in Albertsons, including on lowering prices. The companies say that they will be able to use $500 million in cost savings from the deal to reduce prices for shoppers and tailor promotions and savings. Grocery prices increased 13% in September over the last year, the fastest pace in decades. Prices at the grocery store are a major concern for shoppers right now. Here’s how the mega-merger could impact grocery shopping in America. The companies say they will divest hundreds of stores in areas where they overlap to win regulatory approval. Bernie Sanders and Elizabeth Warren, have already called on regulators to block the deal. The merger will face intense scrutiny from the Federal Trade Commission and other regulators. There’s no guarantee the deal will go through, however. ![]() A Kroger-Albertsons merger could reshape the grocery industry.
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