(SPONSORED) — The potential merger between Kroger and Albertsons has consumers and lawmakers concerned. Director of Data-Driven Economic Strategies (DDES) Tatiana Bailey explains the potential consequences of the merger.
According to Bailey, if the Federal Trade Commission (FTC) approves the merger between Kroger and Albertsons, then Kroger would acquire Albertsons for $25 Billion.
“Consumers are right to be concerned about this. Typically, larger mergers result in higher prices, worse conditions for workers, closed stores, and job losses,” said Bailey.
Bailey said in 2014 a similar merger was approved by the FTC between Safeway and Albertsons. That merger resulted in closed stores, layoffs, reduced benefits and working conditions, and higher prices.
The other worry said Bailey, is here in Colorado, the merger would result in essentially a duopoly with Kroger-Albertsons and Wal-Mart controlling the vast majority of the food supply chain, along with pharmacy and other related products.
In Senate hearings, Bailey said Kroger and Albertsons have said they would close or sell about 400 stores. Bailey believes this could be similar to the 2014 merger.