A Kroger spokesperson said the FTC’s decision to sue over its proposed merger with Albertsons Cos. will mean higher food prices for American consumers.
Welcome to The Friday 5, Progressive Grocer’s weekly roundup of the top news and trends in the food retail industry. Each Friday, we’ll take a look at the stories that are most important to our readers and also keep tabs on the trends that are poised to impact grocers.
1. What’s Next for the Kroger-Albertsons Merger Following FTC Lawsuit?
After much speculation that it would do so, the FTC and nine state attorneys sued to stop the proposed merger between The Kroger Co. and Albertsons Cos. According to the FTC, the $24.6 billion merger and divestiture proposal with C&S Wholesale Grocers "falls far short of mitigating the lost competition between Kroger and Albertsons."
“If the Federal Trade Commission is successful in blocking this merger, it would be hurting customers and helping strengthen larger, multi-channel retailers such as Amazon, Walmart and Costco – the very companies the FTC claims to be reining in – by allowing them to continue increasing their growing dominance of the grocery industry,” said an Albertsons Cos. spokesperson.
Added a Kroger spokesperson: “The FTC’s decision makes it more likely that America’s consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts. In fact, this decision only strengthens larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry.”
While details on what happens next are scarce, the FTC claims that the issuance of this administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.
Albertsons says the company “is disappointed that the FTC continues to use the same outdated view of the U.S. grocery industry it used 20 years ago, and we look forward to presenting our arguments in Court.”
2. Cross-Country Grocery Growth
News of grocers large and small opening new stores across the U.S. struck a chord with PG’s readers. Regional player Fareway Stores Inc. and the city of Basehor, Kan., have revealed that they will soon submit an application for the development of an approximately 21,000-square-foot full-service Fareway Meat & Grocery store in Basehor. If approved, this will be the first Fareway Meat & Grocery Store in the state of Kansas.
Sprouts Farmers Market, meanwhile, revealed that it anticipates opening approximately 35 new stores this year. Readers were also rapt by news that Dollar General opened its 20,000th store at its DG Market location in Alice, Texas, on Feb. 24. This latest company achievement comes on the heels of the announcement last month that more than 5,000 Dollar General stores offer produce, providing more individual points of produce distribution than any other U.S. mass retailer or grocer.