State fighting grocery merger for good reason
Two of the biggest national supermarket companies — Kroger, which operates the chain Harris Teeter; and Albertsons, which owns Safeway — are seeking to become a single corporate giant. This proposed merger could have an enormous impact on Marylanders, affecting consumers, employees, farmers and small independent grocers.
We want to protect fair competition, the rights of workers, our agricultural and small business sectors, and the interests of consumers.
In light of the potential for significant harm to those interests, the Maryland Office of the Attorney General last month joined a bipartisan group of nine attorneys general and the Federal Trade Commission (FTC) to bring an action designed to block this deal.
Our concern with this merger lies in the impact it could have on Maryland’s hardworking families and those who rely on affordable, accessible food options. We recognize that mergers can sometimes benefit consumers. But legitimate concerns arise when corporate giants combine forces, potentially reducing competition, limiting choice and raising prices. Right now, Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states. And Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states. Together, the companies employ approximately 710,000 people nationwide, thousands of them right here in Maryland, across more than 80 stores.
Through a survey posted to our website, we asked the people of Maryland to share their thoughts about how a proposed Kroger/Albertsons tie-up “might affect you and your community.”
In response, a majority of Marylanders expressed concerns about “decreased competition,” “lower quality” and “less product diversity” that would “inevitably [wreak] havoc on pricing and food availability.”
Right now, these two supermarket behemoths vigorously compete against each other for our shopping dollars. What will happen if they no longer need to price milk, meat and produce with a view toward enticing customers to their respective stores? Or what if they were to close stores in the name of “efficiency,” like cost-savings or reducing redundancies for the company?
Well, it just might be that prices will increase
while food and store choices decrease.
Maryland has a strong tradition of supporting the rights of workers. Any merger of this magnitude raises concerns about potential job losses, changes in working conditions and the overall well-being of employees.
Our state is blessed with a vibrant agricultural sector, and our local farmers play a critical role in supplying fresh, nutritious produce to our families and communities.
This merger could have implications for the relationships between farmers and grocery chains, potentially
disrupting the supply chain, reducing the output of meat and produce, and affecting the livelihoods of those in our agricultural communities.
Small and independent grocers are the lifeblood of our communities, offering personalized service, unique products, and a sense of familiarity that cannot be replicated by larger corporations.
We recognize the concerns that arise when mergers of this scale occur, and we are committed to preserving the roles of our “mom-and-pop” stores in Maryland’s diverse marketplace.
All too often, mergers end up harming competition in ways that lead to increased prices, reduced quality, fewer choices and lower wages. For these reasons, we will tirelessly advocate for robust competition in those markets that impact Marylanders. Additionally, we will work to ensure that prices do not increase anticompetitively, that quality and selection are not compromised, and that this merger does not result in supermarket closures that turn some of our most vulnerable areas into food deserts.
You can still share your
feelings about this merger by visiting marylandattorneygeneral.gov. The Kroger/Albertsons merger survey is on the front page. We want feedback from Marylanders throughout this process, so please continue to let your voices be heard. We are listening.
Marylanders deserve nothing less than a fair and competitive marketplace that benefits all.