Delaware News

Treasurer Davis Calls on Federal Trade Commission to Oppose Kroger-Albertsons Merger

Office of the State Treasurer | State Treasurer Colleen C. Davis | Date Posted: Monday, August 28, 2023


Logos of Kroger and Albertsons supermarket chains

In a letter dated August 23, 2023, Delaware State Treasurer Colleen Davis joined six of her colleagues in calling on the Federal Trade Commission (FTC) to oppose the proposed merger between major grocery chains Kroger and Albertsons. Davis believes the merger poses a significant threat to the well-being of Delaware residents and expresses deep concern and strong opposition to the consolidation of two of the largest grocery store chains in the United States.

The FTC is currently reviewing the proposed merger and considering its potential impact on competition and consumers. Treasurer Davis believes the negative impact of the deal could have wide reaching effects.

“I have serious concerns about access to fresh and affordable groceries, particularly in underserved communities,” Davis said. “It’s critical that we maintain a diverse range of grocery options, especially for those who rely on these stores for their daily needs.”

In addition to the severe consequences to Delawareans’ access to food in their communities, Treasurer Davis also cautions about the potential harm to workers’ livelihoods.

A study from the Economic Policy Institute, found that the merger between Kroger and Albertsons could result in a total loss of $334 million in wages for over 746,000 grocery store workers across more than 50 metropolitan areas. This loss translates to an average annual wage decrease of approximately $450 per worker.

Treasurer Davis expressed concerns about the potential impact on workers in both companies. Albertsons currently operates 18 stores in Delaware: 15 under the Acme name and 3 more Safeway stores, with Kroger owning two Harris Teeter locations.

“Mergers often lead to job cuts and layoffs as duplicate positions are eliminated in the name of cost savings,” Davis said. It’s crucial that we protect workers’ livelihoods and job security.”

The letter also asserts “the consolidation of the chains would diminish workers’ ability to organize and negotiate for better wages and working conditions,” stressing that by “reducing the number of outside options available to workers, the merger would significantly limit competition in hiring and retaining employees, undermining their bargaining power.

“While mergers and acquisitions can sometimes provide benefits, we must carefully consider their impact on our communities, workers, and consumers,” Davis said. “I believe that this proposed merger between Kroger and Albertsons could have far-reaching negative consequences, and I am committed to advocating for the best interests of Delawareans.”

Read and download the full letter here.

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Treasurer Davis Calls on Federal Trade Commission to Oppose Kroger-Albertsons Merger

Office of the State Treasurer | State Treasurer Colleen C. Davis | Date Posted: Monday, August 28, 2023


Logos of Kroger and Albertsons supermarket chains

In a letter dated August 23, 2023, Delaware State Treasurer Colleen Davis joined six of her colleagues in calling on the Federal Trade Commission (FTC) to oppose the proposed merger between major grocery chains Kroger and Albertsons. Davis believes the merger poses a significant threat to the well-being of Delaware residents and expresses deep concern and strong opposition to the consolidation of two of the largest grocery store chains in the United States.

The FTC is currently reviewing the proposed merger and considering its potential impact on competition and consumers. Treasurer Davis believes the negative impact of the deal could have wide reaching effects.

“I have serious concerns about access to fresh and affordable groceries, particularly in underserved communities,” Davis said. “It’s critical that we maintain a diverse range of grocery options, especially for those who rely on these stores for their daily needs.”

In addition to the severe consequences to Delawareans’ access to food in their communities, Treasurer Davis also cautions about the potential harm to workers’ livelihoods.

A study from the Economic Policy Institute, found that the merger between Kroger and Albertsons could result in a total loss of $334 million in wages for over 746,000 grocery store workers across more than 50 metropolitan areas. This loss translates to an average annual wage decrease of approximately $450 per worker.

Treasurer Davis expressed concerns about the potential impact on workers in both companies. Albertsons currently operates 18 stores in Delaware: 15 under the Acme name and 3 more Safeway stores, with Kroger owning two Harris Teeter locations.

“Mergers often lead to job cuts and layoffs as duplicate positions are eliminated in the name of cost savings,” Davis said. It’s crucial that we protect workers’ livelihoods and job security.”

The letter also asserts “the consolidation of the chains would diminish workers’ ability to organize and negotiate for better wages and working conditions,” stressing that by “reducing the number of outside options available to workers, the merger would significantly limit competition in hiring and retaining employees, undermining their bargaining power.

“While mergers and acquisitions can sometimes provide benefits, we must carefully consider their impact on our communities, workers, and consumers,” Davis said. “I believe that this proposed merger between Kroger and Albertsons could have far-reaching negative consequences, and I am committed to advocating for the best interests of Delawareans.”

Read and download the full letter here.

image_printPrint

Related Topics:  , , , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.