![]() ![]() “The federal regulators are starting to look at market power,” he said. Two Alaska legislators have written a letter to the Federal Trade Commission explaining Alaska’s unique shipping situation, asking the FTC to investigate the potential for price hikes following the Kroger-Albertsons merger.ĭowney said the FTC has begun to examine the deeper ramifications of such mergers. Attorneys general in Washington state, Illinois, California and the District of Columbia have now filed suits to prevent various aspects of the merger, including the fear of an illegal monopoly that will hurt consumers in the long run. But first, it has to pass antitrust standards. The merger will take some time and is planned for early 2024. Repeated calls and emails to Kroger and Albertsons corporate offices over the last month were not returned. You can pretty much name your price and people are gonna have to pay it.” “You don’t have the competitor across the street making sure you don’t have a crazy price on milk or cucumbers. “And then you have market power - the power to set the prices,” Downey said. Downey said if the merger goes through, one of those stores would close. In many Alaska towns, like Fairbanks, the Safeway and Fred Meyer stores are across the street from each other. They serve more Alaskans in those population centers than any other retailers. There are also national wholesalers like Costco and Walmart, which has 10 stores in Alaska - not all of which sell groceries.īut the 12 large Fred Meyer and 35 Carrs Safeway stores are the major competitors in the Anchorage, Fairbanks, Juneau, Kenai-Soldotna and Palmer-Wasilla areas. Smaller chains include the Alaska Commercial Company with 33 stores serving rural communities, and the emerging Three Bears chain with 11 stores. There are some independent grocers in Alaska, niche stores like the Roaming Root in Fairbanks, the IGA store in Delta and the member-owned cooperative in Fairbanks. ![]() Just one grocer would run the companies’ many regional chains, such as Harris Teeter, Ralphs, QFC, King Soopers, Vons, Safeway, Jewel Osco, and Acme.īut in Alaska, where the supply chain is vulnerable, consumers care more about food security. It would also have a huge database of national consumer behavior data, which some analysts are calling the real prize, because it could be used to generate billions in revenue. The new company would be as big as Walmart and Amazon, with nearly 5,000 stores serving 85 million households across the U.S. If the deal is allowed, Kroger would buy Albertsons for $24.6 billion. In a screen capture from announcement video, Rodney McMullen, Kroger Chairman and CEO is welcomed to an Albertsons grocery store by Vivek Sankaran, the current CEO of Albertsons companies. “Together we’ll be able to create a premier omnichannel retailer and provide even more personalized service to customers across the country,” Sankaran said. Vivek Sankaran, the current CEO of Albertsons, said the new company will upgrade stores and expand the brands they sell. Nationally, Kroger is the nation’s second-largest supermarket chain and Albertsons is the fourth-largest grocer. The United Food & Commercial Workers Union Local 1496 has been negotiating with Fred Meyer, but has not commented on that or the merger. Currently, Safeway stores are unionized and Fred Meyer stores are not. The two grocers are among Alaska’s largest employers. So, you have half as many employees, but all the same customers.” “It means you had two grocery stores and now you have one. ![]() “And what that means when they say they’re getting more efficient, which is how they sort of sell this, is they mean they’re firing people,” said Graham Downey, a consumer advocate with the Alaska Public Interest Research Group. Kroger runs Alaska’s Fred Meyer stores, and Albertsons runs Carrs Safeway stores. “The combination of Kroger and the Albertson companies is a tremendous opportunity to bring together two highly complementary organizations,” said Kroger Chairman and CEO Rodney McMullen, who promised efficiencies and a “world-class shopping experience.”īut Alaskans are worried about jobs and the downsides of such a merger. 14, posting online video statements from their CEOs. The corporations announced the merger agreement Oct. More than a month after announcing that Kroger and Albertsons grocery stores will merge, the corporations have no explanation for how it will affect Fred Meyer and Safeway customers in Alaska. Kroger, which owns Alaska’s Fred Meyer stores, plans to buy Albertsons for $24.6 billion. A Carrs Safeway store owned by Albertsons at the Midtown Mall in Anchorage. ![]()
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