In an article by Jennifer Strailey in The Packer, independent grocers generally reacted negatively following news of the proposed acquisition of Albertsons Company by the Kroger Company in a $25 billion transaction. The National Grocers Association representing the independent sector of food distribution maintains that the combination of Kroger and Albertsons will place member stores at a disadvantage. 

A representative of Baron’s Market based in Southern California is intent on maintaining clientele with concerted service.  Rachel Shemilani, Vice-president of the company stated, “We do things differently than the large grocery stores.”  She added, “As with any merger, the layoffs and store closures will be on the horizon.  What do you do when your favorite grocery store closes?  You search for that sense of community elsewhere.”

Despite optimism expressed by Baron’s, it is clear that the merger will introduce economies of scales and efficiencies.  If prices are passed on to consumers, both independent specialty grocers and the deep discount stores will suffer.