M Davis

Albertsons is a part of the merger that also contains Krogers.

Albertsons and Kroger are multi-million dollar American grocery store retailers, with hundreds of thousands of people shopping at their chains every day. The Albertsons companies own more than 2,200 stores across the country and own several well known brands, such as their own Albertsons brand, Safeway, and Haggens, as noted on their website. According to Kroger’s website, they own 2,750 stores across multiple brands including but not limited to stores like Fred Meyer, Ralphs, and Foods Co. 

In October of 2022, the boards of both brands voted to approve a $24.6 billion merger between the two companies. If the Kroger-Albertson merger is completed, they will become the second largest grocery store retailer, with Walmart being the first in the country, according to Forbes. They would also control 13% of the grocer retail market according to AP News.

The Federal Trade Commission (FTC) has attempted to block the merger citing the United States antitrust laws. Antitrust laws are laws put in place in an attempt to prevent anti-competitive markets caused by monopolies. A monopoly is when a single or a few companies have control over an entire industry. Essentially, the consumer is forced to purchase goods and services from a specific company because there are no other alternatives to purchasing from that company. 

According to Investopedia, since monopolies prevent a free market competition, they could lead to adverse impacts on consumers such as an increase in prices and a general lack of industry innovation. While it should be noted that there can also be theatrical benefits, such as an increase in industry efficiency. 

According to AP News, with their merger, Kroger-Albertsons would then control 13% of the American grocery retail market. Competitors such as Costco and Walmart control 6% and 22% of the market respectively. 

Americans have voiced concern in recent months about general inflation, not specifically related to the merger, saying that raising grocery store prices is making shopping for food more difficult.

Students and families of West Linn shop at nearby grocery stores, some of which are owned by Kroger or Albertsons. There is a Safeway location, owned by Albertsons Co, located less than two miles away from the high school on Salamo Road. Leo Stout, sophomore, has opinions on the merger as their family is one that frequents grocery stores owned by the two companies. 

“I don’t think companies should be able to merge because that would be a horrible, horribly inefficient system for the people and make grocery buying a hassle,” Stout said. 

Kroger Co. has said that it is committed to defending the purchase of Albertsons Co. According to Market Watch, the FTC has sued to prevent the merger. The merger cannot be completed while the lawsuit is still open. 

U.S. District Judge Adrienne Nelson has set the beginning of the hearing at Aug. 26, 2024. According to Reuters, the FTC wishes to put a preliminary injunction on the merger. Sighting Oregon Public Broadcasting, the FTC claims that the merger could potentially raise consumer prices, but Kroger has denied all allegations of the merger potentially harming consumers, saying that they have no plans to raise prices for consumer goods. 

According to the Chicago Booth Review, while Monopolies are generally considered to be bad for consumers, there are theoretical benefits. Such as a monopoly having the ability to lower prices since they no longer have to compete with competitors. The opposite is also true, a monopoly has the ability to charge exorbitant prices because they are the only producer the general consumer has the ability to buy from.