In testimony in the trial reviewing the FTC request for a preliminary injunction to block the merger between Kroger and Albertson’s, Rodney McMullen, CEO of the Kroger Company denied price gouging or any intention of raising prices if the proposed transaction is completed.

McMullen attributed high costs for groceries after the inflationary post- COVID period to an escalation in the cost of fuel, credit card swipe fees and groceries sold by his and other chains.

McMullen stated that “Kroger would absolutely not” raise prices if the merger is concluded and has gone on record as offering to apply $1 billion to reduce prices in the year following the merger between the companies.

McMullen pointed to competition as a mechanism to maintain prices by stating, “You can’t price above the market.”  This being said, consumers should not be in a position of being limited to where they can purchase their groceries.  The entire case rests on the contention by the FTC and the Attorneys General of nine states that the transaction would effectively reduce competition. This is despite the intention to divest over 500 stores in 18 states to C & S wholesale grocers. This expedient is regarded by many observers as an impractical and nonviable strategy citing the previous history of Haggen acquiring divested Safeway stores.

The FTC maintains that Kroger does not compete with Aldi, a deep discounter; Amazon, predominantly an on-line enterprise; dollar stores, serving a different spatial and earnings demographic or Target offering a broad range of merchandise in addition to groceries. The FTC considers Kroger and Albertsons to be direct competitors as pure-play grocers with their combination potentially detrimental to consumers, workers and suppliers, especially in western states.