![]() “Given the parties’ records of raising food prices for consumers and cutting benefits to workers to pad their own profits… the FTC should oppose this proposed merger,” wrote the politicians. ![]() In a letter to the Federal Trade Commission (FTC) Chair Lina Khan, the lawmakers expressed strong opposition to Kroger’s proposed acquisition of Albertsons. Senator Bernie Sanders (I-Vt.), Senator Elizabeth Warren (D-Mass.) and Representative Jan Schakowsky (D-Ill.) are only a few of the many US politicians who oppose the deal. ![]() Kroger CEO Rodney McMullen infamously said on a call with investors in June 2021 that “a little bit of inflation is always good for our business” – implying that consumers were bearing the brunt of price increases. As Kroger and Albertsons’ prices continued to increase throughout 2021, executive leadership blamed rising costs and inflation but reassured shareholders that the business would profit. Lawsuits filed in Texas and California allege that grocery stores including Kroger and Albertsons inflated the price of eggs by nearly three times during March 2020. What’s more, both Kroger and Albertsons were accused of price gouging in the earliest stages of the COVID-19 pandemic. As many of the country’s poorest paying jobs are in the food industry, this deal could mean more exploitation of workers. During the pandemic, store workers received a “hero pay” benefit of an additional USD 2 per hour for only three months while executive bonuses skyrocketed. In the past year, thousands of Albertsons and Kroger employees have pressed fellow workers to strike for better wages and health benefits in states like Colorado, California, Louisiana, and Texas. According to the Association of American Railroads the nationwide strike could cost the US economy over USD 2 billion a day.Īccording to the US Department of Agriculture (USDA), the cost of food has risen 11.2 percent from September 2021 to September 2022, and more than 13 million families were food insecure in 2021. The USDA’s website states that over 34 million people in the US, including 9 million children, are food insecure.Īdditionally, both Kroger and Albertsons have received accusations of unfair labor practices and poor working conditions for store workers. Another worrying development pressuring US consumer prices is the looming US rail strike, which would take 500000 trucks off the road. The US historic diesel shortage is exacerbating the pressure on consumer prices. As US sanctions on Russian gas imports continue, US refineries struggle to keep up with demand. The announcement of the potential merger is coming as food prices are already soaring. Furthermore, as Kroger and Albertsons shops overlap in many parts of the US, once merged the grocery giant would probably close stores, eliminate jobs, and sell other stores to smaller grocery chains – meaning less jobs for workers and less options for consumers. Indeed, a study published by the Federal Trade Commission (FTC) in 2012 that analyzed grocery mergers found that although prices decrease in unconcentrated markets (meaning rural areas where there are sparse grocery options), mergers in concentrated markets more often lead to price hikes of 2 percent or more. However, experts warn that this has not happened when grocery chains have merged in the past, and consumer advocates are concerned that the company would redirect profit increases to shareholders.Īntitrust advocates claim Kroger’s acquisition of Albertsons would drive out competition and concentrate market power among the larger chain, thus allowing the company to increase prices. Register for your free account today at Kroger’s press release announcing the acquisition of Albertsons, the retail behemoth promised that their greater size and bargaining power will allow them to lower prices for shoppers and pay workers more. Data Link's cloud-based technology platform allows you to search, discover and access data and analytics for seamless integration via cloud APIs. ET of the following day.ĭata provided by Nasdaq Data Link, a premier source for financial, economic and alternative datasets. After Hours trades will be posted from 4:15 p.m. ![]()
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