Kroger and Albertsons proposed what could have been the largest grocery store merger in U.S. history.
Kroger and Albertsons in 2022 proposed what would be the largest grocery store merger in U.S. history. The companies said a merger would help them better compete with big retailers like Walmart, Costco and Amazon. The FTC called Nelson’s decision “a major victory for the American people" that will protect them from higher grocery prices. In Washington, Governor-elect Bob Ferguson, who brought the case against Kroger and Albertsons as the state’s attorney general, called the state court’s decision “an important victory for affordability, worker protections and the rule of law.”
Kroger had promised to invest US$1 billion in lower grocery prices, an additional US$1 billion in higher grocery worker wages and US$1.3 billion to improve Albertsons stores. But Nelson wasn't swayed. Kroger and Albertsons currently compete in 22 states, closely matching each other on price, quality, private label products and services like store pickup. The FTC and the state of Washington argued that a merger would eliminate that competition and raise prices for already struggling consumers. The FTC also said the merger would hurt workers since Kroger and Albertsons would no longer compete to hire them.
“The current competition between Kroger and Albertsons' stores is fierce in the state of Washington," Ferguson said in court before his ruling was released. "Wholesaler C&S, with its limited retail experience and infrastructure, will not be able to replicate the ferocity of that competition or compete effectively in Washington against the colossus that is a merged Kroger and Albertsons.
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