Palm Springs, CA
In June of last year, we did a story on a possible merger between Ralphs and Albertsons, two of the major supermarket chains in the Coachella Valley.
Since that time, the Federal Trade Commission has sued to block the merger, citing potential higher grocery prices and reduced competition.
The regulatory agency’s lawsuit contends that Kroger’s planned acquisition of Albertsons, totaling $24.6 billion and marking the largest proposed merger in U.S. supermarket history, would adversely affect workers as well stripping their ability to negotiate for improved wages and benefits.
(Self Checkout Machines at Ralphs in Palm Springs)
The merger, unveiled in October 2022, aims to unite Kroger’s array of supermarkets, such as the Ralphs chain, with Albertsons’ lineup, including Vons and Safeway. Both companies have argued that the merger is necessary for them to enhance their competitive edge against retail titan Walmart and other players in the grocery industry.
According to the LA Times, data from Numerator, Kroger holds the position of the nation’s second-largest supermarket chain, commanding a market share of 10.1%, following Walmart, which leads with a 23.6% share (excluding its Sam’s Club chain, which adds another 4.7% to its market share). Costco follows closely behind in third place with a 9.2% market share, while Albertsons holds the fourth position with a 6.4% share.
With consumers frustrated at higher prices at the Supermarket typically blamed on inflation, this month President Biden weighed in on the matter stating, “inflation has fallen more than 60% from its peak, but we have more to do to lower costs for hardworking families. Prices are still too high for housing and groceries, even as prices for key household items like milk and eggs are lower than a year ago.” … ” I’m calling on corporations including grocery retailers to use record profits to reduce prices.”