Arizona Attorney General Kris Mayes is investigating the proposed $25 billion merger between supermarket behemoths Kroger and Albertsons.
In a news release, Mayes’ office said that in the name of ensuring consumers are protected, the probe would center on ensuring there are no anti-trust violations that could add up to higher grocery prices. With the two companies already being among the largest in the industry, Mayes added authorities also want to make sure that there are no signs that the store closures and employment changes that many expect will come to harm local communities.
“In addition to skyrocketing prices, the proposed merger raises questions about the potential for store closures that could force consumers to travel farther for groceries – possibly creating food deserts that disproportionately affect minority communities,” Mayes added. “Thousands of employees will also wonder whether their jobs will still exist if the merger is finalized.”
As part of its investigation, in the coming weeks, Mayes said her office would host a series of “listening sessions” to hear what families and communities that could be most impacted by the deal have to say.
In Arizona, Kroger operates Fry’s Food & Drug Stores, Fry’s Mercado, Fry’s Marketplace, and Smith’s stores, while Albertsons controls supermarkets under the Albertsons and Safeway brands. Across the state, the two merchants operate more than 250 combined stores with more than 35,000 workers, accounting for nearly half of the state’s grocery market sales.
As word of Mayes’ probe spread, Kroger issued a statement.
“Importantly, we will not close any stores, distribution centers, or manufacturing facilities as a result of this merger,” the statement said.
A 2015 U.S. Department of Agriculture study found that 17% of Arizonans lived in food deserts, most of them in the far northwest and southeast corners of the state around Ajo and the tribal areas of northeast Arizona.
With food prices now on the rise across much of the country, The Valley has been especially hard hit, with food prices consumed at home up by 11.2% on average in the last year.
Republished with the permission of The Center Square.
