Should Krogers and Albertsons Be Allowed To Merge?

[KMFJD]

It appears that at least 4 State AG's agree with us that the merger shouldn't happen

Private Equity Firms Tried to Shoplift a Supermarket Chain Before Selling It. A Judge Just Stopped Them.

The Albertsons/Kroger merger tells you a lot about our cash-extractive economy.

slate.com

 

[feralkid]

It appears that at least 4 State AG's agree with us that the merger shouldn't happen

Private Equity Firms Tried to Shoplift a Supermarket Chain Before Selling It. A Judge Just Stopped Them.

The Albertsons/Kroger merger tells you a lot about our cash-extractive economy.

slate.com

View attachment 70488

Quite the sleazy move by Albertsons.

 

[SteveGrabowski]

Absolutely wild that Albertson's is still around.

No matter who merges with who, HEB > *.

Meh HEB drove both Albertson's and Kroger out of San Antonio and now all the only bar HEB has to clear is being a little better than Walmart. Which they just barely clear nowadays.

 

[JM Aggie08]

Meh HEB drove both Albertson's and Kroger out of San Antonio and now all the only bar HEB has to clear is being a little better than Walmart. Which they just barely clear nowadays.

This is nothing short of utter blasphemy.

 

[SteveGrabowski]

This is nothing short of utter blasphemy.

Meh same prices as Walmart, don't see anything special about HEB.

 

[MrSquished]

It appears that at least 4 State AG's agree with us that the merger shouldn't happen

Private Equity Firms Tried to Shoplift a Supermarket Chain Before Selling It. A Judge Just Stopped Them.

The Albertsons/Kroger merger tells you a lot about our cash-extractive economy.

slate.com

View attachment 70488

Isn't this communism telling companies what they can or cannot do?

 

[NutBucket]

I'd have to see the market share numbers; IIRC Walmart is actually the nation's leading grocer in market share. But I don't think anyone has a particularly dominant position, as competition is fierce and margins are very tight for groceries. However, you're right that this merger is likely to not be good for consumers. Kroger (Ralphs) and Albertsons (incl. Vons) are major grocers in L.A. County, so they'd have more pricing power combined than with the status quo. There are a lot of Latino supermarkets in SoCal that compete fiercely on price alone.

“According to our 2021 estimates, a merger between Kroger and Albertsons implies 19% combined share of the U.S. grocery market (pre-divestitures), which compares to 25% for the largest player Walmart (30% including Sam’s Club) and 9% for the third-largest player Costco. … Store overlap for Kroger and Albertsons appears heaviest in Southern California, Chicago, the Pacific Northwest, eastern Texas (Dallas and Houston), Denver, Phoenix and the greater Washington, D.C., area.” — Robert Ohmes, BofA Securities

 

[Lost_in_the_HTTP]

Dang. What's up with FL, PA, NY, MN, ND, SD, IA and OK?

 

[manly]

“According to our 2021 estimates, a merger between Kroger and Albertsons implies 19% combined share of the U.S. grocery market (pre-divestitures), which compares to 25% for the largest player Walmart (30% including Sam’s Club) and 9% for the third-largest player Costco. … Store overlap for Kroger and Albertsons appears heaviest in Southern California, Chicago, the Pacific Northwest, eastern Texas (Dallas and Houston), Denver, Phoenix and the greater Washington, D.C., area.” — Robert Ohmes, BofA Securities
View attachment 70525

Thanks, I had a feeling this merger is bad for SoCal (and a few other regions) but it's apparently worse than I thought. I personally do most grocery shopping from Ralphs and Albertsons, so it would definitely have an impact. The good news is there are a lot of Latino supermarkets in L.A. County to choose from, in many (but not all) neighborhoods.

The Slate article @KMFJD cited is very illuminating (didn't think it's even possible for a non-luxury grocer to have high 20% gross margin!). Net profit margins are typically mid to low single digits.

 

[Fenixgoon]

if company A buying company B involves multiple billions of dollars changing hands, my default position is "no".

 

[MtnMan]

No!
I don't have a dog in this play park, as neither are anywhere near me. Closest one is about 60 miles away in a different state.

But it is a trend, to create a monopoly they set the prices to what ever the fuck they want. I also fear that this won't be the end, and they will be buying out other chains of grocery stories to further eliminate the competition.

 

[Captante]

Meh HEB drove both Albertson's and Kroger out of San Antonio and now all the only bar HEB has to clear is being a little better than Walmart. Which they just barely clear nowadays.

I can't speak for how it is in your area, but here in Connecticut Walmart seems to get it's own "special" smaller/lower grade version of the food products they sell and also an inordinate number of expired/nearly expired product is still on the shelves.

The identical brand-product from Stop & Shop or ShopRite (local chains) is slightly more expensive across the board but is also nearly always worth the extra cost. (and this doesn't factor in the "value" of avoiding Walmart !!!)

 

[SteveGrabowski]

I can't speak for how it is in your area, but here in Connecticut Walmart seems to get it's own "special" smaller/lower grade version of the food products they sell and also an inordinate number of expired/nearly expired product is still on the shelves.

The identical brand-product from Stop & Shop or ShopRite (local chains) is slightly more expensive across the board but is also nearly always worth the extra cost. (and this doesn't factor in the "value" of avoiding Walmart !!!)

They're pretty similar in San Antonio other than store brands. HEB's store brands are way better for things like bread, Walmart's are way better for say cereal. And Walmart has a surprisingly good store brand ice cream (not frozen dairy desert) that's just as good as the HEB store brand ice cream for about 35% cheaper if you want simple flavors like vanilla, strawberry, or cookies and cream. Though for the fancier ice creams HEB does have two store brand flavors in white chocolate raspberry and caramel pecan turtle that are worth the higher price if you're really craving them. They're all good enough that these days the only time I buy Blue Bell is if I really want either homemade vanilla (best vanilla ice cream out there) or cherry vanilla.

 

[Lost_in_the_HTTP]

Never

Go

Full


Wally.

 

[AdamK47]

Kroger is based in Cincinnati. The company I worked for last year was losing people left and right to Kroger. Dev Ops, Java devs, PMs, tech writers, anyone in software development. They were growing at an astronomical rate. They wanted local people. With the tight talent pool they were offering big money.

 

[Lost_in_the_HTTP]

^^ And I won't set foot in a Kroger store. They have a low price, no frills subsidiary chain that isn't too bad though.

 

[Lost_in_the_HTTP]

Slamming on the brakes.

California, others ask court to temporarily stop $4 bln Albertsons dividend payment

Reuters|2 hours ago
The attorneys general of California, Illinois and Washington D.C. asked a federal court on Thursday for a preliminary injunction that would prevent Albertsons Companies Inc , which is being purchased by rival Kroger Co ,


...

 

[13Gigatons]

That is a lot of stores under one control!!!!

 

[Lost_in_the_HTTP]

Update:

Kroger, Albertsons selling more than 400 stores in $1.9B deal as they look to close their merger​

ABC|1 hour ago
Grocers Kroger and Albertsons are selling more than 400 stores and other assets to C&S Wholesale Grocers in an approximately $1.9 billion deal as part of their efforts to complete their merger

 

[AdamK47]

Update:

Kroger, Albertsons selling more than 400 stores in $1.9B deal as they look to close their merger​

ABC|1 hour ago
Grocers Kroger and Albertsons are selling more than 400 stores and other assets to C&S Wholesale Grocers in an approximately $1.9 billion deal as part of their efforts to complete their merger

Funny how this news coincides with the news of Kroger having to pay $1.2B for their involvement in the opioid crisis. Bad news Friday. AKA: The Friday news dump.

 

[Lost_in_the_HTTP]

Another No vote:

Washington state sues to block proposed merger of Kroger and Albertsons grocery chains​

Washington state has sued to block the proposed merger of Kroger and Albertsons, two of the nation’s largest grocery chains.


.

 

[RLGL]

NO

 

[Greenman]

Krogers is awesome. Never set foot in one till a year ago. My wife is all up in their deals and specials, filled my truck at the Krogers pump for a buck nine a gallon.

 

[AdamK47]

Kroger.

Not Krogers.

 

[nakedfrog]

Krogers is awesome. Never set foot in one till a year ago. My wife is all up in their deals and specials, filled my truck at the Krogers pump for a buck nine a gallon.

Kroger is Ralph's in CA.