Summer 2024 UPDATE on The Kroger-Albertson’s Merger

Unfortunately, there are several untruths and speculation taking place; therefore, we are going to start with a little background on this mega merger possibility.   Management at your store has been ordered to be positive and talk positively about this merger, even making it sound like it has been approved.  If you read no further, please know that the merger is still pending and has not been agreed to by the Federal Trade Commission (FTC).   On October 14, 2022, Kroger and Albertson’s announced the terms to join these companies into one company at a price of 24.6 billion dollars. 

The Federal Trade Commission (FTC) filed a lawsuit to block the merger on Feb 26, 2024, putting the merger on hold until the matter can be litigated.  The FTC issued an administrative complaint and authorized a lawsuit in federal court blocking the proposed acquisition pending administrative proceedings.  A bipartisan group of nine attorney generals is joining the FTC’s federal court complaint.  New Mexico is one of the nine states. 

The FTC as reported from their website, states the proposed deal will eliminate fierce competition between Kroger and Albertson’s, leading to higher prices for groceries and other essential household items for millions of Americans.  The loss of competition will also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries.  For thousands of grocery store workers, Kroger’s proposed acquisition of Albertson’s would immediately erase aggressive competition for workers, threatening the ability of employees to secure higher wages, better benefits, and improved working conditions.  

Kroger and Albertson’s / Safeway are challenging the FTC suit to gain FTC approval but they will have to succeed in two state courts and one federal court before that happens.  The Washington state and Colorado state injunctions blocking the merger will begin in mid-August, 2024, followed by the FTC lawsuit going before a judge in Oregon U.S. District Court sometime in September 2024.    Kroger will need to win all three court actions for the merger to be approved.   

In hopes of obtaining FTC approval, Kroger planned to sell about 600 stores to C & S Grocers.  In the event Kroger wins against the FTC and the merger goes through, Albertson’s / Safeway will sell nine locations in New Mexico to C & S Grocer.  

On July 9, 2024 Kroger and Albertson’s / Safeway released a list of over 500 stores.  These stores are currently operated under the Albertson’s or Safeway banners and would be sold and operated to C & S Grocers.   These stores are not closing but changing ownership from Albertson’s / Safeway to C & S Grocers; therefore, they will not be stores owned or operated by Kroger.   Once again none of this happens if Kroger loses the court battles with FTC or state courts, because the merger would be stopped.  

New Mexico had nine stores on the list: Safeway 683 and Safeway 2004 in Farmington, Albertson’s 920 in Taos, and Albertson’s stores 939, 938, 924, 917, 919 Los Lunas, and 903 in Rio Rancho.  

The good news for Albertson’s / Safeway Union members at these stores is C & S has committed to honoring the wages and benefits and terms spelled out in the current Union contract.  This is good news for the Union members in these locations as they stay in the same Health Fund and Pension Funds.  The challenge for C & S is can they compete and stay in business against an even larger Kroger should this merger be approved? 
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Also, this could drag out years as it is expected if Kroger loses one of these court cases, they will appeal that ruling.  We have no choice but to wait and see.