If you’re confused about what’s going on with the proposed $24.6 billion supermarket merger between Kroger and Albertsons, you wouldn’t be alone. Over the last few months, I’ve made something of a game asking the clerks at our neighborhood Safeway (which is owned by Albertsons) and nearby King Soopers (which is owned by Kroger) what they’ve heard or know, and not a single employee has any idea what’s going on.
Who can blame them? The merger was announced almost two years ago, but Uncle Sam is standing in the way. If somebody wants to sell and the other guy wants to buy, why stand in the way of the sale? Kroger and Albertsons – two of the country’s largest grocery chains – are squaring off in court against the Federal Trade Commission over charges the merger would create a monopoly and lead to higher prices. Representatives of both supermarket chains say the deal is needed to compete against behemoths Walmart and Costco.
Kroger estimates the deal would save consumers $1 billion and result in lower prices and higher wages for its workers. As the old saying goes, a rising tide lift all boats. Once upon a time, warding off monopolies in the grocery world may have been a legitimate concern, but those days are long gone.
Competition is everywhere these days, from the numerous Walmart groceries in town to Amazon, Sam’s, Costco, Trader Joe’s and even Target. As it is, Walmart holds 22% of the nation’s grocery sales and Kroger and Albertsons are 13% — combined. Consumers are always smarter than the government thinks.
Inflation has made us all especially price conscious. I suspect most people who are on a budget frequent a variety of stores in town, knowing certain staples are cheaper here and taking advantage of weekly sales over there. We’re not suckers who blindly pay more at one store if we know it’s cheaper at another.
I get the sense grocery story loyalty is akin to how we feel about Congress and our congressman or congresswoman. Something like 90-plus percent of people have an unfavorable view of Congress – but somehow like their personal representative enough to keep reelecting them. Personally, I like the folks who run our local grocery stores.
They may represent major chains, but they treat you like it’s a mom-and-pop operation. Some of that might be because they live in the neighborhood, too. The baker at Safeway once called me because she knew I loved their Irish soda bread and had just taken a fresh batch out of the oven.
If you think about it, grocery stores play an oversized role in our lives. From providing for everyday meals to helping us plan feasts on special occasions, they deliver. Shortages and challenges related to the pandemic highlighted just how easy it is to take them for granted.
While many office employees reverted to remote status, supermarket clerks and the whole supply chain workforce were afforded no such luxury. At our local supermarket, I’m also reminded of the fleeting nature of time. Our boys used to be small enough to fit in the cart.
It’s fun to gently slip chubby legs through the folded down seat, especially as they gaze around with wonderment. The boys are too big now for those seats, and so I put fruit and bread there. I’d much rather have a young child in the spot instead.
Supermarkets are full of memories. Growing up, ours had a mechanical horse out front. I think it cost a dime.
I remember being amazed my mother let me eat from a box on animal crackers before we got to the checkout, a parenting tactic designed to keep us occupied. Ditto for the Brach’s Candies display. Having had a sister who died from diabetes complications, she was less inclined to let us drop a nickel in the box for a straight shot of sugar.
It’s likely the government and grocery executives will work something out. Life is all about relationships and negotiation. Let’s just hope that the bureaucrats in Washington recognize the free market, while not always equal, still represents the best opportunity to maintain individual freedom.
Paul J. Batura is a local writer and host of the podcast, “WHAT A LIFE! Lessons from Legends.” He can be reached via email at Paul@PaulBatura.
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