Kroger promises to cut prices if pending merger with Albertsons is approved

DENVER (KDVR) — While awaiting a September trial to consider whether grocery giants Kroger and Albertsons Companies should be allowed to merge, Kroger has issued a new promise to slash prices if the proposed merger is completed.

Kroger, which owns King Soopers, and Albertson’s, which owns Safeway, temporarily halted the merger that was announced in October 2022. The U.S. Federal Trade Commission and the state of Colorado each sued in February to block the $24.6 billion merger, with both entities alleging the measure would harm shoppers and workers by eliminating competition in the industry.

Kroger is promising to invest $1 billion to “further” reduce prices , in addition to investing $1 billion in wages and benefits and $1.3 billion into Albertsons stores “to enhance customer experience.”

A judge in Denver District Court issued a preliminary injunction in late July to temporarily block, which all parties agreed to. The injunction stopped the mega-merger temporarily until the district court can consider a permanent injunction during a two-week trial scheduled for Sept. 30.

While more than 500 stores nationwide will be affected, 91 stores in Colorado could also be sold because of the proposed merger. UFCW Local 7, which represents union workers at King Soopers and Safeway in Colorado, applauded the injunction. The group has been vocal in efforts to stop the merger.

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