Closing arguments heard in WA case against Kroger-Albertsons merger

The trial aimed at halting the $24.6 billion merger between grocery giants Kroger and Albertsons is nearing its 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 the grocery chains claim it would allow them to compete more effectively with the other supermarket giants across the country.

"We have seen evidence that this competition occurs every week in every way possible," said attorney Glenn Pomerantz. "They compete on everyday prices, promotional prices, quality of their products, store hours, e-commerce pick-up times, and a lot of other things. This is the competition that will be lost by this merger."

Pomerantz said the merger would reduce competition in an already consolidated market. Pomerantz and the FTC have been vocal about concerns that the merger would harm communities reliant on these grocery stores, which are among the largest unionized employers in the U.S.

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 over whether the company set to take over some stores — C&S Wholesaler — can maintain the same standards of quality, pricing, and service.

Jobs are also at risk, as the fate of unionized 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 with these concerns and seeking to prevent the merger from moving forward.

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

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

"Walmart is a silver bullet in the literal sense of the term. It is the competitive threat, the existential threat to the grocery retail industry in the United States," Perry said. "Walmart has taken over virutally every town across the United States. It is, by far, the largest seller of groceries, and these are groceries that are not as high quality as the ones you will find in our markets. They are not as varied as you will find in our markets. One of the benefits of this merger is to prevent the increased Walmartification of the United States. The State of Washington would rather replace the corner markets with Walmarts."

As the state trial wraps up, Washingtonians await a federal ruling on the merger, expected in December. That decision could supersede any state-level rulings, 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 the grocery landscape in Washington for years to come.

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