Kroger would drop grocery prices by $1B if merger with Albertsons gets approved

Supermarket chain Kroger plans to decrease grocery prices by $1 billion if its proposed $25 billion merger with smaller rival Albertsons is completed, according to news reports.

Kroger previously said it would lower grocery prices by $500 million at Albertsons’ locations, according to Bloomberg News, Dow Jones Newswires, and Reuters.

The proposed merger, first announced in October 2022, would create a grocery conglomerate with about 4,000 stores. However, because the merger faces several antitrust lawsuits over concerns that the deal would increase grocery prices, it has yet to be completed.

For instance, the proposed merger was halted last month after a Colorado District Court ruled on a lawsuit filed to block the deal, and the subsequent trial is set to begin on Sept. 30, according to State Attorney General Phil Weiser.

At the same time, the merger is also expected to impact the grocery stores’ gas stations, according to the newswires.

“The plan would have a significant impact on one of the nation’s largest and most competitive fuel brands. Most of the divested fuel centers are branded Safeway, part of the Albertsons network,” according to Dow Jones. “The analysis suggests that about one in five Safeway fuel centers would be rebranded if the merger and divestiture plan go forward.”

Last month, the companies released a detailed list of the stores targeted for divestiture, noting that roughly 147 of the 579 stores targeted for divestiture have fuel centers. Kroger and Albertsons operate a total of 1,408 retail fuel outlets alongside supermarkets, according to their websites.

Earlier this month, Albertsons launched a virtual convenience store and expanded its partnership with Instacart, adding new features for customers, including delivery known as Albertsons Rapid. The rapid delivery is available at its Safeway, Albertsons, Shaw’s, ACME, Jewel-Osco, Randalls, and Vons stores.

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