Customers, local grocers and experts weigh in on potential Kroger-Albertson’s merger

The proposed mega merger between Kroger and Albertson’s has a lot of people in the Pacific Northwest talking.

The more than $24 billion dollar deal, if approved by regulators, would unite two of the larger grocers in the country. Currently, QFC and Fred Meyer are under Kroger and Safeway is owned by Albertsons.

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KIRO 7 spoke with UW Professor of Finance and Business Economics Phillip Bond, as well as UW Affiliate Lecturer Dept. of Economics Cristian Santesteban on the matter. Both say the merger does impact competition for grocery stores in the PNW.

“For consumers, it’s coming at time where, in general, we are pretty concerned about increasing concentration of the U.S. economy,” Bond said.

And they say the consumer could really feel the impact from the merger.

“Whatever benefit they claim by being so large and negotiating better prices with the suppliers, that’s not going to offset the reduction in competition,” Santesteban said.

One of the biggest questions going into the potential merger from shoppers is will it raise the price on groceries? Both tell KIRO 7 in most cases during mergers, prices tend to rise somewhat.

KIRO 7 also spoke with local grocer Kitchen and Market owner Stephanie King, who says she sees pros and cons to this sort of merger from a local store perspective.

“Grocery is frequently about convenience and also what you are looking for. And I think it’s going to be one of those times that shoppers will either choose their neighborhood market or sometimes a big basket store that is the right shopping experience for them,” Kind said.

She also believes since the merger isn’t finalized just yet, it could be too early to tell what the exact impact might be.

“There is a potential where we could see some prices drop. But there is also the fear of the consolidation and I know where that’s coming from. But overall, I think we just have to wait and see,” King said.

In the meantime, people tell KIRO 7 they plan to shop wisely.

“With coupons that we get in the mail and so on, like today we saved $52 dollars,” Ray Mann said.

“So, everything’s kind of going up. So, it’s just kind of budgeting around on what I need and what I need right now and try to get that later,” said Jennifer, who was shopping at QFC in Seattle.

Based on Kroger’s website, they lay out a map of what stores they own and stores currently under Albertson’s ownership. While both sides have agreed to terms, regulators still have to approve the merger.

KIRO 7 has reached out to both Kroger and Albertson’s on the matter and are still waiting for a response.

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