Closing arguments heard in WA case against Kroger-Albertsons merger

OLYMPIA, Wash. – The trial aimed at halting the $24.6 billion merger between grocery giants Kroger and Albertsons is nearing an end, as closing arguments were presented in Washington on Tuesday.

The Federal Trade Commission and state officials argue that the merger would eliminate competition, leading to higher prices and lower quality for consumers, while grocery chains say it would allow them to compete more effectively with other grocery giants. supermarkets across the country.

“We have seen evidence that this competition occurs every week in every possible way,” said attorney Glenn Pomerantz. “They compete on daily prices, promotional prices, the quality of their products, store opening hours, e-commerce pickup times and many other things. This is the competition that will be lost with this merger.”

Pomerantz said the merger would reduce competition in an already consolidated market. Pomerantz and the FTC have expressed concerns that the merger would harm communities that depend on these supermarkets, which are among the largest unionized employers in the US.

For Washingtonians, the stakes are high. Kroger and Albertsons together control more than half of the state’s grocery market, and the state has expressed concern about whether the company seeking to acquire some stores — C&S Wholesaler — can maintain the same standards of quality, prices and service.

Jobs are also at risk as the fate of union grocery labor hangs in the balance.

Union members have been particularly vocal, organizing rallies to express fears about job losses and diminished competition. The FTC filed a lawsuit in February, aligning itself with these concerns and seeking to block the merger from moving forward.

On the other hand, Kroger argued that the merger is essential for survival in an increasingly competitive landscape, specifically against Walmart, the country’s low-price leader.

“Right now, there is a 3.4% difference between our prices and Walmart’s,” said Walmart attorney Mark Perry. He claims that without the merger, smaller local stores could be forced out of business by the retail giant.

“Walmart is a magic solution in the literal sense of the term. It’s the competitive threat, the existential threat to the food retail industry in the United States,” Perry said. “Walmart has conquered practically every city in the United States. It is by far the largest seller of groceries, and these groceries are not as high quality as what you will find in our markets. as you will find in our markets. One of the benefits of this merger is to prevent the increased Walmartification of the United States from replacing corner markets with Walmarts.

As the state trial winds down, Washingtonians await a federal decision on the merger, expected in December. That decision could supersede any decisions at the state level, leaving the future of grocery shopping — and competition — up in the air.

For now, the judge has a crucial decision to make, one that could shape Washington’s grocery landscape for years to come.

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