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Can the Kroger-Albertsons Merger Happen with Democrats in Charge?

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As part of their listening tour, Federal Trade Commission Chair Lina Khan and Colorado Attorney General Phil Weiser have been visiting Colorado communities to hear from citizens about the proposed merger between the nation's top grocery chains, Kroger and Albertsons.

The overwhelming majority of those in attendance have expressed their opposition to the merger, with concerns ranging from decreased competition to potential job losses.

However, as Khan made clear at a recent listening session, the FTC does not have the power to simply approve or reject the merger. They must follow the law and conduct a thorough investigation before making a decision. And if they do determine that the merger would violate antitrust laws, it would ultimately be up to a judge to decide the outcome.

The planned merger, announced in October 2022, would create a combined company with 710,000 employees, and nearly 5,000 stores.

To gain regulatory clearance, some stores have already been sold off to a competitor. Despite this, union representatives and advocates for small businesses have continued to voice their concerns, arguing that the merger would lead to reduced competition and higher prices for consumers.

In response to the opposition, a spokesperson for Kroger's subsidiary King Soopers released a statement calling the listening tour a "disingenuous and disheartening" attempt to rally opposition to the merger. They also pointed out the potential benefits of the merger, such as lower prices, secure union jobs, and increased food donations to those in need.

Despite Kroger's claims, the company has recently faced financial struggles, with lower-than-expected sales and a loss in the past quarter. This has led some to question the real motivations behind the merger and whether it is truly in the best interest of consumers.

At the listening tour events, grocery workers shared personal experiences with past mergers that ended in job losses and decreased benefits. One worker, Christine Martinez, recalled her store being sold in 2014 as part of a previous merger and the negative effects it had on the employees. Other speakers raised concerns about the impact on small businesses and local economies, highlighting the potential for decreased competition and reduced market for their products.

While grocery store mergers have been a common occurrence in the U.S., the FTC has rarely intervened due to companies being able to divest stores to meet regulatory requirements. However, with this proposed merger being of such large scale, many are calling for closer scrutiny and potentially blocking the merger altogether.

Both Khan and Weiser have expressed their commitment to listening to the concerns of Coloradans and conducting a thorough review before making a decision. As Weiser stated, this issue is clearly one that hits close to home for many and requires careful consideration.

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For those who have not yet been able to attend the listening sessions, there is still a chance to share comments at coag.gov/grocerymerger.

In the end, the potential merger between Kroger and Albertsons is a highly debated and controversial issue, with strong opinions on both sides. As the FTC continues their investigation and Coloradans continue to voice their concerns, the fate of this merger remains to be seen.

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