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PBS News Hour - Segments

Why federal regulators want to stop grocery giants Kroger and Albertsons from merging

PBS News Hour - Segments

PBS NewsHour

Daily News, News

4.11K Ratings

🗓️ 15 September 2024

⏱️ 6 minutes

🧾️ Download transcript

Summary

What could be the largest grocery store merger in U.S. history is at a do-or-die point, with closing arguments this week in a lawsuit filed by the FTC to stop Kroger's nearly $25 billion purchase of Albertsons. The companies say the merger would lower prices, but regulators argue it would eliminate competition. Washington Post retail reporter Jaclyn Peiser joins Lisa Desjardins to discuss. PBS News is supported by - https://www.pbs.org/newshour/about/funders

Transcript

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0:00.0

What could be the largest grocery store merger in US history is at a do or die point

0:05.3

with closing arguments this week in a hearing over whether the deal could harm

0:09.0

consumers and raise prices by blocking competition.

0:11.9

Croker's nearly $25 billion purchase of Albertsons would bring together a number of well-known

0:17.6

grocery chains under one company, chains like Safeway, Harris Teeter, Ralphs, and Smiths.

0:23.4

Earlier this year, the Federal Trade Commission

0:25.4

filed a lawsuit to stop the deal,

0:27.5

arguing it would eliminate competition.

0:30.4

The companies say the merger would actually lower prices allowing them to compete with industry titans like Walmart Target Amazon and Costco

0:38.4

All this as both 2024 presidential campaigns focus their attention on

0:43.4

finding ways to lower food prices that have shot up nearly 30% since 2019.

0:48.8

Jacqueline Pizer is the retail reporter at the Washington Post.

0:53.0

Jacqueline, give us some context.

0:54.6

Where are Kroger and Albertsons these companies

0:56.9

on the list of grocery chains in this country?

0:59.8

And how much space do they occupy?

1:01.8

Yeah, so Kroger is the number two in sales for groceries across the country.

1:07.1

And Albert since is about number four tied with Amazon, which includes Whole Foods.

1:11.0

So they're two of the largest grocery chains throughout the

1:13.3

entire country and then combining together would make them still number two and

1:17.6

still a bit less than Walmart and sales but they'd still be a pretty big

1:20.7

be a big behemoth when it comes to traditional supermarkets.

...

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