North Texas shoppers remain skeptical of Kroger-Albertsons merger as grocery giants make moves for federal approval

NORTH TEXAS — The largest grocery store merger in the country still needs federal approval from the Federal Trade Commission. The FTC described the deal as harmful to employees, competition, and consumers.

Kroger and Albertsons are selling 579 stores to C&S Wholesale Grocers . Most would know the company in the south as the owners of Piggly Wiggly.

Almost two years after the announcement of what would be the largest supermarket merger in the country, consumers are jumping for joy with the weight of inflation on their backs.

"I'm not really shopping for a family or anything. I'm really just shopping for myself," Taylor Brewster said. "Sometimes me and my friends like to cook."

Brewster said his grocery bill used to be $80 weekly or sometimes every two weeks. That has changed, and his receipt has more than doubled on his latest shopping trip.

"I got a little bit more, but it was about 200 bucks," He said. "For just chicken, rice, vegetables and a couple of snacks and a couple coffee drinks."

Peter Rea thinks the Biden Administration is to blame for inflation. Government spending, he said, was out of control.

"Well, I'm concerned because they say that in the press that there are an awful lot of middle-class people who are short on money for food," Rea said.

Rea and Brewster had been shopping at the Tom Thumb at 6333 E Mockingbird Lane. If the government approves, it will be one of 15 Tom Thumbs to be sold to C&S Wholesale Grocers.

The Federal Trade Commission sued in February to block the merger. The FTC said the proposed merger would allow Kroger and Albertsons to have 5,000 stores, 4,000 retail pharmacies, and nearly 700,000 employees in 48 states.

However, the companies have pushed back, stating that they plan to invest in bringing prices down. First, they need to sell 28 stores in Texas to C & S Wholesale Grocers. 26 in north Texas.

To keep the $24.6 billion merger alive, Kroger and Albertsons are unloading 579 stores.

In a statement, Albertsons said: " C&S is a well-capitalized industry leader in wholesale grocery supply—currently serving more than 7,500 independent supermarkets, retail chain stores, and military bases—with a strong track record as a successful grocery retailer. Their purchase of these assets—along with the associates who will transition to C&S post-close—will enable their company to be one of the leading grocery retailers in the United States, providing communities and consumers with even more choices and access to fresh, affordable food options.

Both C&S and Kroger have each committed that no frontline workers will lose their jobs and no stores will close as a result of the merger. Furthermore, associates will also continue to receive the competitive wages and benefits that they do today, maintaining their pay, health, and wellness plans, and all collective bargaining agreements where they are in place."

Tracey Filbeck and her husband have two teenage boys. She said they eat more than three times a day.

"I was just talking to my parents who live in senior care," Filbeck said. "Don't complain about the food. You have no idea what putting groceries on the table costs these days."

Filbeck still wonders about the grocery chains' promises.

"I just I'm always worried when I see less competition, less separation between companies," she said.

In statements, Kroger said," The comprehensive divestiture plan with C&S is critical to bringing the meaningful and measurable benefits of our merger with Albertsons to associates, customers and communities across America. C&S committed to ensuring zero stores will close as a result of the merger, all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading benefits alongside bargained-for wages. C&S's strong operational focus coupled with its experienced management team and financial resources will position it to successfully operate divested stores for years to come. Importantly, we are committed to working closely with C&S to ensure a seamless transition of ownership for all divested stores and supporting operational infrastructure."

In the meantime, Brewster is trying to live with what's on his receipts.

"It affects my beer money for sure. My having fun money and my savings," Brewster said. "Because all the money I'm trying to save is either going to investments or to rent or car insurance and everything is getting more expensive these days."