Kroger’s October announcement about its $25 Billion merger agreement with Albertson’s is getting significant pushback from employees and lawmakers. The merger, slated to be complete in 2024, would give Kroger control of 22% of the grocery market.
The company says operating on this scope will give them the resources and purchasing power to compete against larger chains and benefit shoppers, workers, and communities.
However, many argue that when a marketplace consists of nothing more than a handful of behemoths, rising prices, low wages, inferior working conditions, and the edging out of vulnerable small and mid-sized retailers often follow. According to a consumer advocacy group Food & Water Watch report, the number of grocery stores declined by about 30% between 1994 and 2019.
The merger announcement may have drawn additional ire because it came at a time when inflation is making it hard for many Americans to feed their families. According to the October Consumer Price Index, cereal and milk, for example, are over 15 percent more expensive than they were a year ago.
On Tuesday, leaders of the two companies defended their proposed merger at a congressional hearing in Washington. That hearing may have been a preview of the antitrust battle to come.
