According to Reuters, “Supermarket chain Kroger plans to lower grocery prices by $1 billion after the completion of its proposed $25 billion merger with smaller rival Albertsons.”
Kroger had previously promised to lower grocery prices by $500 million at Albertsons Companies locations, according to Reuters.
The proposed merger was first announced in October of 2022, and would create a grocery conglomerate with around 4,000 stores. It is yet to be completed, however, as “the deal has faced several antitrust lawsuits over concerns that it would push up grocery prices.”
Reuters reported that “The proposed merger was halted last month pending a Colorado District Court ruling on a lawsuit filed to block the deal. The trial is set to begin on September 30, State Attorney General Phil Weiser had said.”
The merger would also affect the fueling stations at the stores. Kroger and Albertsons “would sell about 10% of their combined retail fuel networks to C&S Wholesale Grocers under a divestiture plan designed to address the government's antitrust concerns over their proposed merger,” according to an OPIS analysis.
According to Dow Jones Newswires “The plan would have a significant impact on one of the nation's largest and most competitive fuel brands. Most of the divested fuel centers are branded Safeway, part of the Albertsons network. The analysis suggests that about one in five Safeway fuel centers would be rebranded if the merger and divestiture plan go forward.”
Last month, the companies released a detailed list of the stores targeted for divestiture. About 147 of the 579 stores targeted for divestiture have fuel centers. Kroger and Albertsons operate a total of 1,408 retail fuel outlets alongside supermarkets, according to their websites.
Earlier this month, Albertson’s launched a ‘virtual convenience store’. Albertsons expanded its partnership with Instacart, adding various new features for customers—including rapid convenience delivery, known as Albertsons Rapid. The rapid delivery is available at its Safeway, Albertsons, Shaw’s, ACME, Jewel-Osco, Randalls, and Vons stores.