News and discussions regarding the Kroger Albertsons merger has set critics ablaze and spurred numerous criticisms across the country. What’s a bit alarming is while both the FTC is investigating the merger, and the UFCW has voted to reject the merger, there is a Kroger Albertsons merger website currently live.
Most critics are questioning the very nature of the Kroger merger and what its purpose is. Kroger buying Albertsons should not be taken lightly, and all eyes are on this situation. CEO Rodney McMullen is not budging in his decision for Kroger buying Albertsons.
Kroger Albertsons Merger: Opponents Criticism
Surprisingly, a group of consumers have filed a class-action lawsuit against the merger with Arizona’s attorney general. While Teamsters are also voicing their concerns for fairness and employment security.
The UFCW or United Food and Commercial Workers International Union is the largest private sector union in the industry with 1.3 million members. After unanimously voting against the Kroger merger, the group has been asking for more information about the deal.
According to Supermarket News, “For months, the UFCW has called for transparency, engaged independent experts, and assessed the publicly available information on this proposed merger to determine the widespread impact it will have on our members and the communities they serve,” said UFCW International President Marc Perrone.
The FTC’s role has been researching the entire grocery sector and questioning wholesalers and competing retailers about how the Kroger Albertsons merger might affect the industry. This also entails pricing, operation details both online and in-store, as well as store labor dynamics might change.
Other Concerns About Kroger Buying Albertsons
Those who oppose the Kroger merger also point out that there will be other imbalances and ramifications that will affect some areas more than others.
For example, Portland is an area that would be completely dominated by the Kroger Albertsons merger. Their sheer number of grocery supermarket stores would be undeniable, and their vast numbers would trickle down into the rest of the West Coast, and even into the core of the Midwest.
According to The Center for Science in the Public Interest, the Kroger merger would negatively affect consumers in a number of ways. For one, the deal would foster a grocery retail environment that would consolidate fewer stores with higher food prices, decreased selection, and hurt people’s access to healthy food.
The Economic Policy Institute states that the merger would also financially harm employees by lowering wages in all states across the country. That accounts for nearly 746,000 supermarket employees nationwide. An estimated $335 million annual loss of wages would cause workers to lose at least $450 a year.
This hotly debated topic is currently under review and it will be interesting to follow it as it pans out. Make sure to visit RetailWire regularly for more news and insight on this topic.
For more information about Kroger’s history, you can read our feature article.