{"id":12423,"date":"2023-12-13T19:10:14","date_gmt":"2023-12-13T19:10:14","guid":{"rendered":"http:\/\/lonecandle.com\/?p=12423"},"modified":"2023-12-13T19:10:14","modified_gmt":"2023-12-13T19:10:14","slug":"ftc-fights-grocery-store-merger-that-may-bring-down-prices","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=12423","title":{"rendered":"FTC Fights Grocery Store Merger That May Bring Down Prices"},"content":{"rendered":"\n

\n\n“a Kroger-Albertsons merger would not create a monopoly in the grocery market. According to a recent report<\/a> by Retail Info Systems, Walmart remains the nation’s largest grocer, controlling 17 percent of the grocery market. The second and third largest grocers are Amazon and Costco. Kroger and Albertsons are only a distant fourth and sixth with market shares of 4.4 percent and 2.2 percent, respectively.<\/p>\n\n\n\n

Grocery stores have experienced a declining market share, while superstores and online competitors have grown. For example, like many traditional grocers<\/a>, Kroger’s market share has declined<\/a> in recent years while Walmart’s has increased<\/a>. Even if Kroger and Albertsons were to merge, it’s not clear that their combined market share wouldn’t continue to decline. The merger would simply enable Albertsons and Kroger to bulk up and compete with larger competitors, like Walmart.<\/p>\n\n\n\n

In addition, Kroger’s decision to sell stores in overlapping markets where Albertsons operates means the merger would not increase concentration in any market. This has traditionally<\/a> been enough for the FTC.<\/p>\n\n\n\n

The national grocery market is also becoming more competitive<\/a>, not less. No longer limited to brick-and-mortar supermarkets and independent grocery stores, the grocery market now includes a growing assortment<\/a> of e-commerce stores, like Amazon, discount grocers like Aldi and Lidl, and delivery providers like FreshDirect and Instacart. These newer market entrants have fundamentally altered grocery shopping.<\/p>\n\n\n\n

The merger will heighten competition among larger competitors, which will drive down prices for consumers. While a merger would not make Kroger and Albertsons the dominant industry players, it would allow them to compete more effectively with others, putting pressure on all major retailers to keep prices low as they fight to preserve their customer base. In fact, Kroger and Albertsons have indicated that the merger will generate\u00a0$500 million<\/a>\u00a0in new cost savings for them that they plan to use to cut consumer prices. In addition, they plan to expand their lineup of affordable store brand products and spend\u00a0$1.3 billion<\/a>\u00a0on improving customer service at Albertsons stores.”<\/p>\n\n\n\n

https:\/\/reason.com\/2023\/11\/24\/ftc-fights-grocery-store-merger-that-may-bring-down-prices\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“a Kroger-Albertsons merger would not create a monopoly in the grocery market. According to a recent report by Retail Info Systems, Walmart remains the nation’s largest grocer, controlling 17 percent of the grocery market. The second and third largest grocers are Amazon and Costco. Kroger and Albertsons are only a distant fourth and sixth with market shares of 4.4 percent and 2.2 percent, respectively.
\nGrocery stores have experienced a declining market share, while superstores and online competitors have grown. For example, like many traditional grocers, Kroger’s market share has declined in recent years while Walmart’s has increased. Even if Kroger and Albertsons were to merge, it’s not clear that their combined market share wouldn’t continue to decline. The merger would simply enable Albertsons and Kroger to bulk up and compete with larger competitors, like Walmart.<\/p>\n

In addition, Kroger’s decision to sell stores in overlapping markets where Albertsons operates means the merger would not increase concentration in any market. This has traditionally been enough for the FTC.<\/p>\n

The national grocery market is also becoming more competitive, not less. No longer limited to brick-and-mortar supermarkets and independent grocery stores, the grocery market now includes a growing assortment of e-commerce stores, like Amazon, discount grocers like Aldi and Lidl, and delivery providers like FreshDirect and Instacart. These newer market entrants have fundamentally altered grocery shopping.<\/p>\n

The merger will heighten competition among larger competitors, which will drive down prices for consumers. While a merger would not make Kroger and Albertsons the dominant industry players, it would allow them to compete more effectively with others, putting pressure on all major retailers to keep prices low as they fight to preserve their customer base. In fact, Kroger and Albertsons have indicated that the merger will generate $500 million in new cost savings for them that they plan to use to cut consumer prices. In addition, they plan to expand their lineup of affordable store brand products and spend $1.3 billion on improving customer service at Albertsons stores.”<\/p>\n

https:\/\/reason.com\/2023\/11\/24\/ftc-fights-grocery-store-merger-that-may-bring-down-prices\/<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[1901,1529,1166,1407,236,551],"class_list":["post-12423","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-ftc","tag-grocery-stores","tag-monopoly","tag-prices","tag-regulation","tag-regulations"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/12423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12423"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/12423\/revisions"}],"predecessor-version":[{"id":12424,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/12423\/revisions\/12424"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}