If the Kroger-Albertsons merger goes through, that new company plus Walmart would control 70% of the grocery market in over 160 cities. You think grocery prices are bad now? Without competition, it would be a price gouging free-for-all. This is why the FTC is suing to stop it.
If it goes through, it will be a disaster for Oregon, Washington, and Idaho.
It will mean that in many cities, the only grocery stores are Kroger owned.
I was in grocery ten years ago, kroger's profit margin was under a penny per dollar, walmart's was 3.5 cents per dollar. That is unsustainable for kroger. But merging is traumatic for customers. It would put stores like meijer in a pinch, even, let alone 2-3 store chains. the industry is a mess.
It's absolutely wild to see the concentration of the market since the late 70s.
E.g. United Natural Foods was a NE distribution channel, grew till it was global, then whole foods bought it.
There are some grim charts showing consolidation out there. (Search now sucks)
That's NOT a very accurate analysis. Look what happened when the Baby Bells were created after breaking up the Bell System.
The parts that were created became BIGGER monopolies:
IE Verizon, ATT
Also, I want to confess that I don't really know what the solution is. Once you've let Monopolies form, how can you truly reverse it. Breaking them up, may not be the solution, but I'm also at a loss for what else to do.
The very FIRST thing to do is get the lobbyists money OUT of politics and politicians pockets.
Bottom line is GREED and we can NEVER underestimate another man's greed factor.
Next might be moratoriums on M/A activities.
Lastly give workers a REAL living wage💯
Agree... and each, way more vile. ATT did real important research... Those were different times. Abject greed had yet to take full hold on us. There was still an idea of doing the right thing. Now, the right thing is how to squeeze the last nickel out of the enterprise and no one argues it.
I read your book, The System, but how again did we lose the laws against monopolies? I assume rich lobbyists are constantly trying to rig the system for the privileged. How do we keep the rich and powerful under control??
This is why the FTC under BIDEN is suing to stop the Kroger-Albertsons merger. If Trump or another Republican were in office, the FTC wouldn't have interfered.
Fun fact. No large merger EVER has reduced prices for consumers. EVER. Only profits for their shareholders who can now jack up prices without any existing competition.
The UK'S Tesco supermarket chain has tried twice to enter the US grocery market and both times Walmart froze them out. Things will only get worse, denying Americans choice.
It will have a terrible effect on competition at the supply level, which has been consolidating for years now already, which would pinch small grocery chains. Walmart used to charge customers half a penny less than our supplier, nash finch which got bought-consolidated by spartan finch.
