Proposed grocery merger may affect local stores

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Many local residents were upset when headlines on various news outlets announced the local stores that were included in the proposed sale to C&S, a large wholesaler, as part of the proposed merger between the massive Kroger and Albertsons corporations. Stores on the list in the Cedar Mill area included the Safeways in Bethany and Cedar Mill, and the QFC stores in Bethany and West Hills. Kroger owns Fred Meyer and QFC stores, and Albertson’s owns Safeway. The companies are proposing to divest a number of stores to C&S, a third party, to avoid claims of anti-competition.

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It’s unlikely that a busy store like the Cornell Road Safeway would close if the merger goes through

Not much is known about the details of how the stores will be branded or run if the deal goes through. And the deal isn’t done. 

The Federal Trade Commission and nine states, including Oregon, argued that the $24.6 billion deal would hurt competition and workers, says the Oregonian. “In February, The Federal Trade Commission sued to block the largest proposed supermarket merger in U.S. history—Kroger Company’s $24.6 billion acquisition of the Albertsons Companies, Inc.—alleging that the deal is anticompetitive. The largest supermarket merger in U.S. history will eliminate competition and raise grocery prices for millions of Americans, while harming tens of thousands of workers,” FTC alleges. That case is set for trial August 26. 

From the NW Labor Press: “In addition, several states and other groups are suing to stop the merger. A separate FTC case is set to go before a federal administrative law judge July 31; a lawsuit by the Colorado attorney general goes to trial August 12; and a lawsuit by the Washington attorney general goes to trial September 16.” 

However on July 25, a Colorado judge “granted preliminary injunction to delay the acquisition that would merge Albertsons into Kroger while canceling a hearing that had been set for August 12. Instead, the court scheduled a trial to September 30. That trial is expected to last two weeks,” according to the Portland Business Journal

Even if the deal goes through, it’s unlikely that C&S would close profitable stores.