2 Major Texas Grocery Store Companies Set To Merge, Prices Could Lower

It appears that two major chain grocery stores will be merging, and it might even have a positive impact on the cost of your grocery bill moving forward. A while back it was announced that Albertsons and Kroger would soon be merging, well it looks like that will certainly be the case. We've got everything you should know about the merger and what it could mean for your grocery bill moving forward...

In September of 2023, Kroger and Albertsons announced a large divestiture of 413 stores to C&S Wholesale Grocers. Most of the divested stores are located on the West Coast, while the companies have limited overlap in other areas (see below). As part of the divestiture agreement, the buyer has agreed to purchase an additional 237 stores if such sales are required by regulators.

According to FOX Business, Of the 579 stores, 18 are located in Alaska; 101 in Arizona; 63 in California; 91 in Colorado; one in Delaware; 10 in Idaho; 35 in Illinois; two in Louisiana; four in Maryland; two in Montana; 16 in Nevada; nine in New Mexico; 62 in Oregon; 28 in Texas; four in Utah; three in Virginia; 124 in Washington; one in Washington, D.C.; and five in Wyoming, according to the list published by Kroger and Albertsons.

The FTC claims that the Kroger-Albertsons merger would result in "higher prices for groceries and other essential household items for millions of Americans" and would limit "consumers' choices for where to shop for groceries," among other concerns. Meanwhile, the grocery chain has stated that it will "produce meaningful and measurable benefits for customers, associates, and communities across the country."

Kroger announced that the combination will benefit consumers. In a statement issued on Tuesday, the chain's CEO stated that it will enable the company to "reinvest in even lower prices."

"We believe the way to be America's best grocer is to provide great value by consistently lowering prices and offering more choices," said chairman and CEO of Kroger Rodney McMullen. "When we do this, more customers shop with us and buy more groceries, which allows us to reinvest in even lower prices, a better shopping experience, and higher wages. We know this model works because we've been doing it successfully for many years, and this is exactly what this merger will bring customers – lower prices and more fresh, affordable choices."