KROGER IN COURT: Getting Ready for Trial 3 – This Time in Colorado
While Kroger and Albertsons are still in the midst of their trial in Washington state regarding their proposed merger, they're also gearing up for court proceedings in Colorado. A trial is scheduled to start on Monday, Sept. 30, with the aim of also blocking the $24.6 billion deal.
In February, following a yearlong investigation, Colorado Attorney General Phil Weiser filed a lawsuit in Denver District Court to block the merger of two of the largest supermarket chains in Colorado. According to the lawsuit, the merger would eliminate head-to-head competition between Kroger and Albertsons and consolidate an already concentrated market.
Kroger operates more than 140 King Soopers and City Market stores, while Albertsons runs 100-plus Safeway and Albertsons stores in the state. According to the attorney general’s office, the grocers account for more than 50% of market share in Colorado, and combining them would violate state antitrust laws.
“Coloradans are concerned about undue consolidation and its harmful impacts on consumers, workers and suppliers,” said Weiser. “After 19 town halls across the state, I am convinced that Coloradans think this merger between the two supermarket chains would lead to stores closing, higher prices, fewer jobs, worse customer service and less resilient supply chains.”
A bid this past summer by Kroger to dismiss the lawsuit was denied. The court there believed that since Kroger does business in the state, the company is responsible for upholding Colorado’s monopoly laws. At the time of the decision, Kroger CEO Rodney McMullen said the the company is “prepared to defend” the merger.
The Colorado trial is expected to last two weeks.
In other merger news, the trial in Seattle is still ongoing, having entered its seventh day on Sept. 25. Wednesday’s proceedings focused on the fierce competition in groceries and household goods that extends beyond Kroger and Albertsons to include Walmart, Costco and Amazon. According to Kroger, its merger will help the combined company compete effectively and offer customers the lowest possible prices while providing good-paying jobs to union workers.
[RELATED: Kroger in Court: Grocer Trying to Keep Up With Walmart]
Kroger insists that the efficiencies generated by the merger aren’t just aspirational – they’re supported by the company’s track record of lowering prices for customers following mergers.
Meanwhile, Kroger and Albertsons are awaiting the decision in the FTC trial in Oregon, which concluded on Sept. 17.
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.
