Today, Explained Supermarket supermerger
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Oct 27, 2022 
Ron Knox, a senior researcher at the Institute for Local Self-Reliance, examines the proposed $25 billion merger between Kroger and Albertsons. He raises skepticism about claims that this mega-company will lower prices, emphasizing the potential for layoffs and reduced competition. Knox draws parallels with past supermarket consolidations, warning that such mergers often lead to monopolistic practices. He also highlights the regulatory challenges, pointing out the FTC's historical leniency towards mergers, which may harm consumers and communities.
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Profit Increase vs. Inflation
- While inflation contributes to rising grocery prices, corporate profits for grocery chains have also increased significantly.
- These increased profits haven't resulted in lower consumer prices but in higher dividends for shareholders and stock buybacks.
Double-Sided Price Control
- The proposed merger gives the combined supermarket chain power to control prices on both ends.
- It can charge higher prices to consumers while also pushing down prices paid to its suppliers.
Whirlpool-Maytag Merger
- Whirlpool and Maytag merged after promising lower prices for consumers.
- Prices actually increased, especially for dryers, after factory closures and layoffs.