BACKGROUND
In October 2022, the nation’s two largest traditional supermarket chains, The Kroger Company and Albertsons Company, Inc., announced plans to merge their supermarket sectors. Collectively Kroger and Albertsons operate around 5,000 stores, 4,000 retail pharmacies, and 700,000 employees across 48 states. Their significant size is the result of multiple mergers with other grocery stores going back three decades.
On February 26, 2024, the FTC filed an administrative proceeding along with the States of Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming and the District of Columbia, halting the acquisition, and listing the potential harms to consumers and grocery store employees. Ideally, businesses compete amongst themselves to win over clients, and to hire employees who have the training and skills to enhance the employers’ services and brands. As a result of this competitive environment, consumers can choose amongst competitors for the best deals, and employees can negotiate and obtain higher compensation and benefits. If allowed, the proposed merger can destroy competition, raising the cost of groceries for millions of Americans and their families, as well as take away employees’ power to negotiate wages, benefits, opportunities, and quality of workplace conditions and protections.
Kroger and Albertson owned supermarkets include:
- Carrs
- Fred Meyer
- Haggen
- Harris Teeter
- Jewel-Osco
- King Soopers
- Mariano’s
- Quality Food Center (QFC)
- Ralphs
- Safeway
- Smith’s
- Vons