Failed Kroger-Albertsons merger could keep a lid on D-FW grocery prices

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While there’s a lot of moving parts in the D-FW market, the collapse of the closely watched tie-up between Kroger and Albertsons could give consumers more...

The proposed merger between Kroger and Albertsons is officially dead — and that just might be good news for Dallas-Fort Worth shoppers.

On Wednesday, Albertsons and Kroger terminated the grocery store chain merger after the U.S. District Court in Oregon and the King County Superior Court for the State of WashingtonAlbertsons also took the step to file a lawsuit against Kroger for breach of contract and is seeking billions of dollars in damages.This was a large deal valued at $25 billion and with stores dotting cities all over North Texas.

period, according to the U.S. Bureau of Labor Statistics. Fruits and vegetables helped drive the decline with the biggest decrease. Still, nationally the average rose 1.6% as the broader consumer price index rose 2.7%.“With food prices rising, the last thing consumers need is less competition in the grocery sector,” said Lindsay Owens, executive director of Washington think tank and progressive advocacy group Groundwork Collaborative, in a statement.

The Dallas-area grocery market has shown some dynamism. Roughly a month before the merger was even announced, San Antonio-based H-E-B opened its first store in Frisco — and has become a rising player among North Texas grocers. It continues to build and open new sites around D-FW, including McKinney and“D-FW’s grocery sector is significantly more competitive than Washington or Oregon,” said Bobby Gibbs, partner in Oliver Wyman’s retail and consumer goods team.

While the merger may be dead, it’s not a mystery why it received attention. “It was a big league play,” Young said. “The every day needs and offerings of grocers is really important to the consumer and all of us.”Brian is a business reporter specializing in retail for the Dallas Morning News. He earlier covered technology for the Dallas Business Journal after working at other news providers in California, Ohio and Idaho. He now resides in Frisco.

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