Lowering prices for customers is an essential part of Kroger’s business model. Following the merger close, Kroger will invest:
These investments build on Kroger’s proven track record of lowering prices:
Kroger's mergers have delivered savings for customers which proves we follow through on our commitments:
“Building on a similar track record in prior transactions, Kroger has committed to investing $500 million in price reductions for customers following the Albertsons merger. And unlike Amazon and Walmart who have increased their profit margins, Kroger has reduced its profit margins by 5% in the last 20 years, saving its customers billions.”
Julian Cañete
CEO of California Hispanic Chambers of Commerce
“There's just simply no evidence to suggest that Kroger buying Albertsons would raise prices to people. Kroger’s a better, more aggressive, more competitive pricer than Albertsons is; it would almost unquestionably be better for the people who are buying groceries at those stores.”
Bryan Gildenberg
Retail Cities North America, Managing Director
“I looked at all the ones that [Kroger] merged, and it's absolutely true: they brought down prices. I wonder whether it will matter to the FTC, but they actually did bring down prices... That's why I looked at this thing – I was trying to poke holes in it when Rodney was on. You couldn't. It’s unassailable. You do better when they merge.”
Jim Cramer
CNBC Squawk on the Street
2/13/24
“Competition remains a driving force that historically enhances consumer benefit. The merger between Kroger and Albertsons could foster healthy competition, providing consumers with more choices and potentially driving improvements in pricing, service, and product offerings. Embracing this change aligns with the spirit of a free-market economy that has historically fueled innovation and improved consumer experiences.”
Cory Gardner
Former U.S. Senator, U.S. Representative, and Colorado State Representative
"Will the merger help consumer choice? It should. The new organization will be able to compete more effectively with the onslaught of online and warehouse competition. With C&S competing, prices and product selection should improve... The Kroger Albertsons merger may be the final chance to level the playing field to improve competition, create more choice and provide local jobs in the community."
Mark Harmsworth
Washington Policy Center, Small Business Center Director
"This deal could provide some food pricing relief for consumers, With Aldi, Lidl and other discount grocers coming in, this positions Kroger to drive the market forward."
Ken Fenyo
President of Research at Coresight
“That’s why I believe this one… makes too much sense for the American people, which is what we really care about.”
Jim Cramer
CNBC Mad Money
7/26/23
“[Lowering prices] is actually part of how Kroger competes… Kroger lowers prices to attract more customers, which allows them to make up sales on volume.”
Cincinnati Enquirer
"An argument can be made that a stronger combined company could possibly help reduce food inflation … It would also mean greater competition for food manufacturers... This comes at a time when consumers are increasingly looking for value and trading into private brands to help reduce the strain of higher food prices."
Krisztina Katai
Deutsche Bank
10/17/22
"…allowing Kroger and Albertsons to merge will likely mean a more, not less, competitive market in the long run…Consumers deserve better when it’s a matter of putting food on the table."
Clyde Wayne Crews
Competitive Enterprise Institute, Vice President for Policy
"Specifically, we see opportunities for KR to help improve ACI’s business through better pricing, further improving loyalty/usage of data, and operating a bit more centralized without losing local advantages. And there are likely some ways that ACI can help KR as well, such as in fresh categories."
Scott Bender
Cleveland Research
"… given KR’s more aggressive focus on price gaps, we would expect some level of future price investment."
Simeon Gutman
Morgan Stanley
10/14/22