U.S. Senator Ron Wyden (D-OR) and U.S. Representative Pramila Jayapal (D-WA) are leading more than 25 Members of Congress in urging the Federal District Court of Oregon to grant the Federal Trade Commission’s request for a preliminary injunction in the Kroger-Albertson’s merger case.
The amicus brief outlines three major concerns with the merger:
Harm to consumers.Harm to workers.The growing consolidation of grocery chains is leading to monopolistic practices.
“A Kroger and Albertsons merger will mean higher prices and an even tougher time finding a pharmacy,” Wyden said. “Every measure should be taken to ensure Oregonians can still fill their prescriptions and put food on the table. Blocking this merger would give mom-and-pop shops a strong line of defense against corporate giants—all while protecting our rural communities.”
“In Washington State alone, 124 grocery stores will be sold off if this merger goes through – including nearly 70 in the greater Seattle area,” Jayapal said. “There are many questions about what this merger could mean for store closures, or their quality if they remain. There is no doubt that this merger would mean fewer options, and it will likely lead to higher prices, more food deserts, and layoffs of hardworking, union employees. Greater competition, not increased consolidation is better for our economy, consumers, and workers.”
The FTC’s current challenge to the Kroger-Albertson’s merger, which threatens 617 stores nationwide, charges that the proposed deal will eliminate competition, leading to higher prices and lower quality products at stores. These negative impacts were seen in 2015 when Albertsons merged with Safeway resulting in store closures and higher consumer costs, a release from Wyden states.
According to Wyden, a potential Kroger-Albertson’s merger would also limit employment competition, reducing workers’ ability to negotiate higher wages, better benefits, and improved working conditions. For that reason, the FTC has focused this case on the likely harm to nearly 100,000 unionized grocery workers. Federal legislation protects workers from mergers that negatively impact employment, especially for unionized workers.
The merger is part of a larger trend toward consolidation in the supermarket industry. The U.S. has one-third fewer grocery stores than 25 years ago. Aside from the direct threats this poses to consumers and workers, it gives large grocery chains monopoly power to disadvantage smaller, independent grocers and farms, the release states.
This case is being heard by the Federal District Court for the District of Oregon where the FTC has requested a preliminary injunction.
Background
Oregon could see 62 Safeway and Albertsons stores sold as part of a planned merger between parent company Albertsons and Kroger.
So far, the proposed list does not include the Safeway in Cottage Grove, but does include a Safeway and an Albertsons in Eugene.
Stores would be sold to C&S Wholesale Grocers, LLC, a New Hampshire based company that operates an extensive grocery supply operation, as well as grocery stores in the Midwest, South and Northeast.
Kroger and Albertsons are the nation’s two largest grocery chains. In Oregon, the two corporations operate 176 stores, serving nearly every community in the state. Kroger operates 51 Fred Meyer and 4 QFC stores, while Albertsons operates 96 Safeway and 25 Albertsons stores.
Oregon Attorney General Ellen Rosenblum has joined the Federal Trade Commission and a bipartisan coalition of attorneys general from across the nation in acting to block the proposed grocery chain merger. The lawsuit seeks to block the proposed Albertsons-Kroger merger.
The FTC, Oregon, and the other states participating in the legal action allege the proposed merger would violate the federal Clayton Act. That act prohibits acquisitions which may substantially lessen competition.
Attempts to merge the two grocery giants began in October 2022, when the companies announced that Kroger planned to acquire Albertsons for $24.6 billion.
The brief was also signed by Representatives Becca Balint (VT-At Large), Lisa Blunt Rochester (DE-01), Nikki Budzinski (IL-13), Cori Bush (MO-01), Greg Casar (TX-35), Jesus G. "Chuy" García (IL-04), Val Hoyle (OR-04), Henry C. "Hank" Johnson (GA-04), Raja Krishnamoorthi (IL-08), Summer Lee (PA-12), Ted W. Lieu (CA-36), Jerry Nadler (NY-12), Alexandria Ocasio-Cortez (NY-14), Mary Sattler Peltola (AK-At Large), Katherine Porter (CA-47), Delia C. Ramirez (IL-03), Jan Schakowsky (IL-09), Adam B. Schiff (CA-30), Kim Schrier, M.D. (WA-08), Adam Smith (WA-09), Rashida Tlaib (MI-12), Bonnie Watson Coleman (NJ-12), Nikema Williams (GA-05) and Senators Maria Cantwell (WA), Jacky Rosen (NV), and Elizabeth Warren (MA).
Follow developments online at cgsentinel.com and in the Wednesday print editions of The Sentinel.
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