KROGER IN COURT: Grocery Execs Testify in Washington as Colorado Trial Begins
Meanwhile, the third merger review case in Colorado began Sept. 30. In February, following a year-long investigation the Colorado Attorney General Phil Weiser filed a lawsuit in Denver District Court to block the merger. According to the lawsuit, the deal would eliminate head-to-head competition between Kroger and Albertsons and consolidate an already concentrated market.
According to Kroger, its divestiture plan directly addresses competitive harm in Colorado, with C&S Wholesale poised to operate 91 of the 105 Colorado Albertsons stores. Only 14 of the stores included in the merger deal will be operated by Kroger, and there is no competitive harm in any of those 14 communities. Kroger says its plan is to reduce prices in Albertsons store locations by $1 billion, including $40 million in Colorado alone.
Further, Kroger asserts that it chose C&S as its divestiture partner because the retailer is the “anti-Haggen.” Kroger says C&S is well capitalized, has three years to rebanner its stores, has a nationwide distribution network that serves three times the number of stores as Albertsons operates today, and it will be supported by Kroger in private label brands, IT infrastructure, customer data and distribution management for several years following the merger.
A decision is expected this week from the U.S. District Judge for Oregon Adrienne Nelson in the FTC’s case against the merger.
Cincinnati-based Kroger serves more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The grocer is No. 4 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
As of June 15, Albertsons Cos. operated 2,269 retail food and drug stores with 1,725 pharmacies, 403 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Boise, Idaho-based company operates stores under more than 20 banners. Albertsons is No. 9 on The PG 100.
Keene, N.H.-based C&S is No. 18 on PG’s list.