Rep. Smith Sends Letter to Albertsons and Kroger CEOs Regarding Recently Announced Merger
November 3, 2022
“At a time when grocery prices have increased, further consolidation in a market that is already highly concentrated raises serious concerns. I believe it is imperative that ample time is given to investigate the effects this merger may have on consumer prices, food access for consumers, and wages and employment for workers,” wrote Rep. Smith.
Rep. Smith continued, “Albertsons employs thousands of workers who have raised reasonable fears that the dividend payment will lead to accelerated store closures and layoffs. The $4 billion payment represents approximately a third of Albertsons’ market capitalization that could be put into worker wages and store improvements to keep the chain competitive. I am particularly worried about the pressure that places on local stores to lower wages and slash benefits for workers.”
Rep. Smith concluded, “I represent a district with a high concentration of Albertsons and Kroger stores. In several neighborhoods, the two chains are each other’s biggest competitors. The merger process may be substantially disruptive to many of my constituents. I firmly believe that this merger should be fully reviewed prior to any major shareholder payout.”
A full copy of the letter can be found here.