ARIZONA
Arizona Secretary of State Adrian Fontes is fighting to stop the nearly $25 billion merger between Kroger (which owns Fry's) and Albertsons (which owns Safeway). He and six other secretaries of state wrote a letter asking the Federal Trade Commission (FTC) to block the merger.
In the letter, Fontes says that combined, Kroger and Albertsons would control nearly a quarter of the U.S. food retail market. Attorney General Kris Mayes says that number would be even higher here in Arizona. The main concern is that fewer options mean higher prices.
"I just think it would be bad for shoppers," Phoenix resident Marcia Nix said. "There's going to be higher prices," fellow Phoenix resident and Safeway shopper James De Guzman said. "It's a monopoly as always."
Maybe not quite a monopoly, but Safeway shoppers are concerned about their options if the Kroger-Albertsons merger becomes official. "My main complaint would be that when the two stores merge, there wouldn't be as much competition," Nix said.
NEW MEXICO
Democratic officials from a handful of states including New Mexico are condemning a merger between Kroger and Albertsons. The grocery giants entered into the $25B deal last year for Kroger, which owns Smith's stores in New Mexico, to buy rival Albertsons. The deal is now up for review before the Federal Trade Commission.
New Mexico Secretary of State Maggie Toulouse Oliver is one of seven secretaries of state who signed a letter calling on the FTC to block the merger. They argue the new, bigger chain would control a quarter of the United States market limiting competition and giving the company no incentive to keep prices low.
They said the monopoly would also hurt workers, suppliers, and farmers and that the company could decide to close hundreds of stores in areas where Kroger and Albertsons overlap especially in low-income communities. The companies argue the deal will actually lower prices and make them more competitive with mega-retailers like Walmart and Amazon.
NEVADA
Attorney General Aaron Ford announced Monday a series of listening sessions for public comment and consumer opinion on the pending merger between Albertsons and Kroger.
The two grocery store giants announced a $24.6 billion merger agreement in October 2022. The proposed merger is expected to be finalized in early 2024 if it is approved by state and federal regulators.
In Nevada, Kroger is the parent company of Smith's grocery stores, and Albertsons is the parent company of Albertsons, Safeway, and Vons grocery stores. The merger may have potential impacts on grocery stores, consumers, and employees in the state of Nevada.
Under Nevada Law, the Attorney General's Office has the authority to review the proposed merger to determine its impact on Nevada grocery stores and to "ensure it is proper, does not unfairly disrupt competition, and is fair to local grocery stores, consumers, employees, and others," a release from the Attorney General's Office said.
As part of that review, Attorney General Ford wants to hear from the public.
"It is incumbent upon my office to review a corporate merger of this scale under the unfair
trade practices act to determine its impact on trade and Nevada consumers," Attorney General
Ford said. "Considering the potential implications, it is important for me to hear directly from
Nevada consumers to fully understand their concerns about the grocery store merger."
