Here's What the Merger Between Kroger and Albertsons Could Mean for Shoppers

01.12.2022 - 20:45 / glamour.com

. Now, government officials are worried that groceries will get even more expensive, as the two largest supermarket chains in the U.S. plan a historic merger.Kroger that it would merge with Albertsons Companies, Inc.

in a nearly $25 billion deal that is aimed at making the company more competitive with other giants like Walmart and Costco. The proposed merger would combine the first and second ., and would allow the new company to operate nearly 5,000 stores across 48 states and the District of Columbia. This combined presence, would serve 85 million households accounting for approximately 13% of the market.

The merger comes just years after —a deal which,  ended up . It was a win for Albertsons. But it may have been a loss for consumers. Studies from both  and  note that grocery mergers have historically resulted in increased prices for shoppers.

As such, , members of congress wrote to the chairwoman of the Federal Trade Commission, expressing concerns that the merger would harm consumers, workers, and other small businesses by stifling competition. The letter urged the Federal Trade Commission to “closely evaluate” the acquisition to determine if it violates established antitrust laws. The number of grocery stores has declined by roughly 30% between 1994 and 2019, . The same report notes that among grocery retailers, Walmart claims a nearly 35% market share, while Kroger takes 13.9%, Costco 12.2%, and Albertsons 8.1%.