Current:Home > InvestA Kroger-Albertsons merger means lower prices and more jobs. Let it happen. -DollarDynamic
A Kroger-Albertsons merger means lower prices and more jobs. Let it happen.
View
Date:2025-04-13 01:57:58
In the latest edition of “Rich States, Poor States,” an annual report assessing state economic performance across several categories, Arizona ranks third nationally for economic performance.
The lofty ranking can in part be attributed to Arizona policymakers’ commitment to marketplace competition and a lighter regulatory burden on job creators.
That commitment has resulted not only in more jobs but also has benefited Arizonans with more choices and lower prices.
A Kroger-Albertsons merger makes sense
Perhaps no sector of our economy is as competitive as the grocery industry.
No longer limited to traditional grocery stores, concepts like supercenters, membership clubs and online grocers have entered the field to compete for a spot in consumers’ household budgets.
The competition is fierce. Grocers need to be innovative to survive. Some, like Kroger and Albertsons, which own Fry’s and Safeway, respectively, want to team up.
A Kroger-Albertsons merger makes sense.
Consider that Walmart is the largest grocer in the world and in the United States, where the company’s 30% national share is more than double a combined Kroger and Albertsons.
Back off, FTC.Suing to stop Kroger-Albertsons merger exemplifies bumbling bureaucracy.
The same goes for Arizona, where, just like nationally, Walmart has a bigger market share than even a combined Kroger and Albertsons would.
Amazon, Costco, Target and Aldi have all grown their offerings in Arizona as well.
Merger would ensure stores stay open
With all this competition that delivers Arizona shoppers wide selections at various price points, why is Arizona Attorney General Kris Mayes suing to stop a combined Kroger and Albertsons by relying on a law intended to stop monopolies?
Mayes and opponents of the proposed merger say they’re looking out for consumers and workers, but they’re doing more harm than good.
After all, if Kroger and Albertsons can’t keep pace in their current form, then stores will close, leaving shoppers with fewer choices and workers out of a job.
Under a merger, Kroger and Albertsons have committed to not close stores.
To meet competition requirements, they would sell some stores to C&S Wholesale Grocers. The national network already supplies more than 7,500 independent grocery stores. It also owns the Piggly Wiggly and Grand Union grocery brands.
Various stores in Arizona are part of the sale, meaning more choices for consumers and saved jobs, including union jobs. C&S said it will continue to recognize the union workforce and maintain all collective bargaining agreements.
Kroger also has promised to lower prices
Claims of price hikes don’t add up, either.
Kroger has lowered prices following other acquisitions. Over the past 20 years, Kroger has reduced its gross profit margin significantly to lower prices for customers by $5 billion.
As part of the merger with Albertsons, Kroger has committed an additional $500 million to continue lowering prices after the transaction is completed.
Warning for US economy:Small businesses are cutting jobs
Mayes and opponents say they’re responding to consumers’ concerns and worries. But their rhetoric around the proposed merger contradicts the public commitments Kroger has made since the merger was announced.
And that only contributes to the consumer anxiety opponents cite as justification for seeking to block the deal.
Kroger and Albertsons have made strong commitments to preserve jobs and shopper choice. We would expect the attorney general and opponents to hold them accountable for keeping their end of the bargain.
Two grocery companies have assessed the market conditions and have concluded that a merger makes the most sense for their continued survival.
Let the market determine whether they’ve made the right calculation.
Danny Seiden is president and CEO of the Arizona Chamber of Commerce & Industry. This column originally appeared in The Arizona Republic.
veryGood! (24)
Related
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- Hordes of thunderous, harmless cicadas are coming. It's normal to feel a little dread.
- Unfortunate. That describes Joel Embiid injury, games played rule, and NBA awards mess
- Police: Inert Cold War-era missile found in garage of Washington state home
- Why members of two of EPA's influential science advisory committees were let go
- Joe Rogan inks multiyear deal with Spotify, podcast to expand to other platforms
- Fiona O'Keeffe sets record, wins Olympic trials in her marathon debut
- 9 inmates injured in fight at Arizona prison west of Phoenix; unit remains on lockdown
- Rolling Loud 2024: Lineup, how to stream the world's largest hip hop music festival
- Bond denied for suspect charged with murder after Georgia state trooper dies during chase
Ranking
- Bodycam footage shows high
- Kandi Burruss announces 'break' from 'Real Housewives of Atlanta': 'I'm not coming back this year'
- Dua Lipa Is Ready to Dance the Night Away in Her 2024 Grammys Look
- Jack Antonoff & Margaret Qualley Have A Grammy-Nominated Love Story: Look Back At Their Romance
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
- At least 46 were killed in Chile as forest fires move into densely populated areas
- Glen Powell Responds to His Mom Describing His Past Styles as Douchey
- You’ll Adore These Fascinating Facts About Grammy Nominee Miley Cyrus
Recommendation
NFL Week 15 picks straight up and against spread: Bills, Lions put No. 1 seed hopes on line
Alexandra Park Shares Rare Insight into Marriage with One Tree Hill's James Lafferty
Dua Lipa Is Ready to Dance the Night Away in Her 2024 Grammys Look
The New America’s Team: How the Chiefs have become the new ‘it team’ in professional sports
FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
Judge in Trump's 2020 election case delays March 4 trial date
Japanese embassy says Taylor Swift should comfortably make it in time for the Super Bowl
Harry Edwards, civil rights icon and 49ers advisor, teaches life lessons amid cancer fight