PORTLAND, Ore. — Supermarket chain Albertsons told a federal judge Monday that it might have to lay off workers, close stores and even exit some markets if its planned merger with Kroger isn't allowed to proceed.
“This lawsuit is part of an effort aimed at helping Americans feed their families," the FTC's chief trial counsel, Susan Musser, said in her opening arguments on Monday. But Kroger and Albertsons insist the FTC's objections don't take into account the rising competition in the grocery sector. Walmart's grocery sales totaled £247 billion last year compared to $63 billion in 2003, for example; Costco's sales have grown more than 400% in the same period.Mainigi said Albertsons' customers now spend 88 cents of every dollar at competitors that range from Aldi and Trader Joe's to Dollar General.
But Wolf said C&S has the experience and infrastructure to run the divested stores and would be the eighth-largest supermarket company in the U.S., if the merger plan goes through. “Enough is enough,” said Carol McMillian, a bakery manager at a Kroger-owned grocery store in Colorado. “We can no longer stand by and allow corporate greed that puts profit before people. Our workers, our communities and our customers deserve better.”
Mainigi argued the deal could actually bolster union jobs, since many of Kroger's and Albertsons' competitors, like Walmart or Costco, have few unionized workers.
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