Kroger CEO defends potential Albertsons merger in court

Published: Sep 04, 2024 Duration: 00:03:23 Category: News & Politics

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the CEOs of two major grocery store chains testified at a hearing in Portland Oregon yesterday defending Kroger's nearly 25 billion doll purchase of rival Albertson's the Federal Trade Commission is trying to stop what be what would be the largest grocery chain merger in American history jool link K has more now in this morning's money watch jool link 25 billion that's a big grocery bill good morning yeah that's a big number Tony that's right Kroger's CEO testifying yesterday that a merger with its rival Albertson would help their stores compete with those bigger competitors like Walmart and eventually Amazon whether this will actually lead to better products and prices is the central question here for Shoppers and the two CEOs are vowing it will prices are hot at a time when grocery prices are top of Mind things that you used to buy like eggs has just gotten really expensive they're also at the center of a major lawsuit filed by the Federal Trade Commission the CEOs of Kroger and Albertson say if combined they could better compete with giants like Walmart CCO and Amazon for our customers it's about offering lower prices and more choices but the FTC warrants the merger of the two companies which operate in 22 States would give consumers fewer choices the FTC is alleging that if Kroger and Albertson come together it would be bad for the consumer and raise grocery prices is that an accurate argument I'm not convinced of that argument if they're somehow able to combine their stores some of those cost savings through lower wholesale prices could be passed on to Consumers Kroger's CEO Rodney McMullen said in court on Wednesday the day that we merg is the day that we will begin lowering prices and promised a$1 billion investment to lower prices if the merger goes through since 2019 grocery prices have skyrocketed the cost of eggs rose from a $120 to 272 orange juice has jumped from $2.49 to 426 and a loaf of bread from $128 to just under $2 and even with larger grocery stores struggling to compete local food markets could be barely hanging on what could a merger like this do to smaller chains the mom and pop shops out there they will confront a a bitter reality because not only are they having less competitive power but they also have less buying power and that means higher prices for consumers and frankly perhaps fewer customers it is such a competitive Marketplace out there right now the CEO of Albertson's also testified that if this deal falls through the chain may have to consider layoffs and store closures now we want to point out that Albertson's prices are about 10 to 12% more than Kroger's so the promise that prices will indeed go down as an ambitious one but with eight other states and Washington DC joining this lawsuit we may be a ways away from any resolution and this hitting your actual grocery receipt when you go and pay at the checkout guys well joling nobody wants to hear that they just want you to make things cheaper it's very very expensive in the grocery store thank you very much always good to see you

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