Merger of Kroger and Albertsons now in question after FTC files lawsuit

Feb 26, 2024, 9:59 AM

An Albertsons grocery store. (Sarah A. Miller/Idaho Statesman via AP)...

An Albertsons grocery store. (Sarah A. Miller/Idaho Statesman via AP)

(Sarah A. Miller/Idaho Statesman via AP)

The Federal Trade Commission (FTC) and a group of attorneys general are taking legal action to block the proposed merger between Kroger and Albertsons. The deal, valued at $24.6 billion, has raised concerns about its impact on consumers and workers.

The FTC alleges that the merger would eliminate competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items. Consumers would have fewer choices for where to shop for groceries, potentially resulting in lower quality products and services. The loss of competition could also affect the availability of affordable goods for millions of Americans.

Union: History is doomed to repeat itself if Kroger-Albertsons merger happens

Kroger’s acquisition of Albertsons would diminish competition for workers. Grocery store employees would face the risk of lower wages, reduced benefits, and deteriorating working conditions. The merger threatens the ability of employees to secure better pay and improved working conditions.

Kroger operates thousands of stores across 36 states, including regional banners like Fred Meyer, Fry’s, Harris Teeter, King Soopers, Kroger and Quality Food Centers (QFC). Albertsons also operates thousands of stores across 35 states with regional names such as Albertsons, Haggen, Jewel-Osco, Pavilions, Safeway and Vons. If the merger were completed, Kroger and Albertsons would jointly operate more than 5,000 stores and approximately 4,000 retail pharmacies, employing nearly 700,000 employees across 48 states.

Both Kroger and Albertsons are the largest employers of union grocery labor in the U.S. They actively compete for workers and often try to recruit employees from each other, especially in local markets where their operations overlap. Currently, most workers for both supermarket chains are members of the United Food and Commercial Workers (UFCW) union.

Related news: Kroger, Albertsons selling QFC brand name, over 400 stores in $1.9B deal

The FTC’s administrative complaint and federal court lawsuit aim to prevent the merger pending further review. The concerns raised highlight the potential impact on consumers, workers, and the competitive landscape in the grocery industry.

Bill Kaczaraba is a Digital Content Editor for MyNorthwest.

MyNorthwest News

Renton bus crash...

Shawn Garrett, KIRO 7 News

Eight injured after bus crashes into Renton ravine

A bus driver suffered a medical emergency, crashing the bus into a ravine in Renton, injuring eight people on board.

3 hours ago

Photo: Police say a man reached for his chicken sandwich, flipping his car....

Bill Kaczaraba

Oops! Chicken sandwich causes car to flip in Vancouver, WA

It turned out to be a very bad day for a man who dropped his chicken sandwich in his car. He flipped his vehicle reaching for it.

4 hours ago

Actor Alec Baldwin reacts during his trial for involuntary manslaughter for the 2021 fatal shooting...

Associated Press

Case dismissed against Alec Baldwin in fatal shooting of cinematographer

A nearly three-year legal saga for Alec Baldwin in the fatal shooting of a cinematographer ended Friday with the actor cleared of wrongdoing.

4 hours ago

Photo: KIRO Newsradio is celebrating the 50th anniversary of its "newsradio" format with a special ...

MyNorthwest Staff

KIRO celebrates 50th anniversary of ‘newsradio’ format with special alumni broadcast

KIRO Newsradio is celebrating the 50th anniversary of its "newsradio" format with a special broadcast featuring several prominent alumni.

16 hours ago

Photo: Police swarm Alderwood Mall in Lynnwood after shooting on July 3....

James Lynch

Police identify 2 girls who were with alleged Alderwood Mall shooter

There are new developments in last week's deadly shooting at Alderwood Mall. Jayda Woods-Johnson, 13, was killed.

18 hours ago

Photo: A sea lion pup at the Point Defiance Zoo bonds with its mother....

Julia Dallas

Sea lion pup earns her name at local zoo; another animal expecting

Woodland Park Zoo and Point Defiance Zoo and Aquarium both have news! Two animals are experiencing motherhood for the first time.

19 hours ago

Merger of Kroger and Albertsons now in question after FTC files lawsuit