The Federal Trade Commission is continuing to investigate the potential effects of the proposed merger between the Kroger Company and Albertson’s.  Currently the Agency is consulting with farmers, small grocery chains and consumer groups including the Centers for Science in the Public Interest.  Some concern has been expressed by the National Grocers Association expressing reservations over the creation of a large chain that will have the potential to apply predatory pricing in competition with smaller retailers.  At the very least, the Federal Trade Commission will probably require a spinoff of as many as 650 stores in areas with overlap.

The merger is opposed by the two major unions representing the workers who are employed by the two companies. In response, Kroger has offered up to $1 billion to raise wages and to provide additional benefits to 700,000 part-time and full-time employees.

Rodney McMullen, Chairman and CEO of the Kroger Company stated, “Kroger’s educational benefits support associates who are interested in advancing their learning in any way they want.  Our commitment to offering financial counseling services provides associates with the tools they need to build a budget, pay off debt or begin saving for retirement.” 

Notwithstanding the Kroger offer, unions are concerned that the power of a combination of Kroger and Albertsons will be to the disadvantage of workers.