If Kroger Buys Albertsons, Are We the Winners?
Oct 14th, 2022
Two powerhouse grocery chains confirm, Kroger intends to buy Albertsons in a deal valued at more than $24B. Our Kevin Gade told WCPO reporter Dan Monk, it is consumers who may ultimately benefit from the deal due to Kroger’s improved buying power, even when compared to grocery giant, Walmart. “If you think about the leverage that Walmart has with a lot of the manufacturers, whether it’s household goods, food manufacturers, the combination of Kroger and Albertsons should be able to have stronger leverage at the table, particularly at a time when inflation is as high as it is.”
Gade warns that regulatory review will make it hard for Kroger to close the deal quickly. Eventually, he expects the company’s bigger purchasing power to translate to lower prices at the cash register. “We wouldn’t expect tomorrow store prices to fall, unfortunately. It will take some time, the data that we’re seeing the buying power that we should be able to see from the two combined entities, that should hopefully, ultimately help the consumer.”
Kevin Gade, CFA, CFP®
Chief Operating Officer
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