Key Points
In a complaint filed in federal court in Portland, Oregon, the FTC said the combination of the two largest US supermarket chains would unduly concentrate the market, despite a proposal by the companies to sell off stores to Piggly Wiggly chain owner C&S Wholesale Grocers Inc..
If the Federal Trade Commission is successful in blocking this merger, it would be hurting customers and helping strengthen larger, multichannel retailers such as Amazon, Walmart and Costco the very companies the FTC claims to be reining in by allowing them to continue increasing their growing dominance of the grocery industry," he said..
She added that the FTCs ruling makes it more likely that US consumers will see higher food prices and fewer grocery stores and that it would further strengthen the growing dominance of larger, non-unionized retailers Walmart, Costco and Amazon..
C&S has been an FTC-approved buyer in previous grocery deals and its proposed acquisition of stores will benefit workers, consumers and communities, she added..
Kroger and Albertsons, which announced their proposed tie-up in late 2022, have said they would invest $500 million to cut prices and $1 billion to raise worker wages and benefits, in addition to $1.3 billion to improve Albertsons stores..
