Alaska's two biggest grocery chains to sell stores as part of merger. This business professor explains why.

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Jarrad Harford, a professor at the University of Washington Foster School of Business, has been following the proposed merger since it was first announced.

The two biggest grocery store chains in the country, and Alaska, are moving forward with their multi-billion-dollar merger, and they’ve announced a plan to sell more than a dozen stores in Alaska to a third company.

That proposal by Fred Meyer parent company Kroger and Carrs Safeway owner Albertsons, to sell 14 Safeway stores in Alaska to C&S Wholesale Grocers, is designed to satisfy the Federal Trade Commission. The worry is that if a single company controls grocery sales in a particular community, the lack of competition would lead to higher prices for consumers and reduced bargaining power for union workers.

Jarrad Harford, a professor of finance at the University of Washington Foster School of Business, has been following the proposed merger since it was first announced nearly a year ago. And Harford says there’ve been a lot of questions since then about the significant overlap the companies have in places like Alaska.: You know, it’s interesting even though these mergers are national in scope, the arguments with the FTC are very local.

 

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