KROGER IN COURT: A Case of Déjà Vu
According to Kroger, its divestiture plan has already addressed the issue of competitive harm in Colorado. Under the plan, C&S will operate 91 of the 105 Colorado Albertsons stores under the leadership of seasoned Albertsons executives, including COO Susan Morris, who is poised to lead C&S’ retail division post-merger. Only 14 of the stores included in the merger deal will be operated by Kroger, and the grocer insisted that there’s no competitive harm in any of those 14 communities.
Despite the imminent rulings in Oregon and Washington, Colorado’s attorney general won’t back down. The Denver Gazette reported that before the state’s trial began, Weiser said in a press conference that he’d continue his pursuit to stop the merger until the grocers back out, despite the other court rulings. Those cases could go to appeals, he noted, so Colorado’s case will stay in trial unless the grocers accept any court rulings to place an injunction.
The Washington trial began Sept. 16 and is set to last three weeks. The Colorado trial is scheduled to end by Oct. 18.
Kroger continues to defend its deal, asserting that it entered into the agreement to merge with Albertsons to keep pace with an expanding set of competitors, extend its geographic reach, increase its operating efficiency and bring lower prices to customers. C&S is already budgeting $150 million per year to bring down prices and better compete with large players such as Walmart.
Cincinnati-based Kroger serves more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The grocer is No. 4 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
As of June 15, Albertsons Cos. operated 2,269 retail food and drug stores with 1,725 pharmacies, 403 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Boise, Idaho-based company operates stores under more than 20 banners. Albertsons is No. 9 on The PG 100.
Keene, N.H.-based C&S is No. 18 on PG’s list.