Marketplace - Amid scrutiny, Kroger and Albertsons say merger may take longer than planned

Marketplace quoted Open Markets’ food systems policy director Claire Kelloway on how the proposed merger between grocery store giants Kroger and Albertsons would increase the company’s negotiating power with brands. 

Grocery store giants Kroger and Albertsons say it’s going to take a little longer than expected to iron out their proposed merger. The deal was supposed to happen early this year, but now the companies say it could be pushed out to August.

In the meantime, Washington state is suing to block the merger. And the deal is under scrutiny from the Federal Trade Commission and several state attorneys general over antitrust concerns.

Albertsons and Kroger say the retail food market is changing, and joining forces will help them keep up. 

“In many instances, you now see supermarkets competing with non-supermarkets in the food space,” said Bobby Gibbs, a consultant at OliverWyman.

Non-supermarkets like Walmart and Amazon and even dollar stores are capturing more of our grocery spending. But if you look at the number of supermarkets across the country, Kroger and Albertsons are still two of the largest chains. 

Read full article here.