PHX Reporter

Phoenix, AZ – On August 28, Rep. Ruben Gallego (AZ-03) wrote to Federal Trade Commission (FTC) Chair Lina Khan urging the Commission to oppose Kroger Company’s potential acquisition of Albertsons Companies, Inc.—two grocery chains that have a presence in Arizona.

In the  letter,  Gallego writes: “I fear that, without competition in the grocery sector, large chains like the proposed Kroger-Albertsons conglomerate could monopolize entire regions of Arizona, then raise prices, close store fronts, and eliminate jobs.”   

Basic access to nutritious food is already an issue in Arizona, with 13.1% of residents lacking basic access, which is above the national average of 11.8%. Rep. Gallego states this lack of access is especially troubling for rural Arizona. For example, no supermarkets are in a 25-mile stretch of Cochise County. 

“While mergers can sometimes offer benefits such as increased efficiency and cost savings, I firmly believe that this particular merger could have significant negative impacts on our local economy, small businesses, and the well-being of our residents,” said Sierra Vista Mayor Clea McCaa. “Through reduced competition, job losses, impact on local businesses and reduced quality and service, I believe that this merger would hinder growth in our county. Our cities thrive when local businesses are given a fair chance to succeed and when residents have access to diverse and affordable shopping options. Together, we can work towards creating a vibrant and sustainable community that prioritizes the needs and interests of its people.”  

“Without a fully in-depth study and commitment to the potential impact it would have on the only grocery store in Bisbee with the acquisition of Safeway by Kroger, I cannot support the merger currently.  It could bring higher prices, closing of our store, job losses and reduced innovations. If the FTC requires concessions from Kroger those unknowns are too great.  Bigger is not always better, especially in Rural Southern Arizona,” said Bisbee Mayor Ken Budge. 

For many parts of Arizona, supermarkets are the largest employer, main pharmacy, and only nutritious food source. Seniors, veterans, and people with disabilities rely on these stores, and the impact of consolidating stores and shuttering locations could be disastrous. 

"Douglas has seen firsthand how a grocery store merger can impact a small community,” said Douglas Mayor Donald Huish. “In 2021, when Food City/Bashas merged with Raley's, part of the merger included store closures. The Douglas Food City was closed and was the only grocery store in our community, besides Walmart. We are still struggling to replace and attract a grocery store to Douglas. While monopolization is another impact, it is necessary to also consider all impacts to smaller cities and the impacts to their local economy." 

“Competition is a cornerstone of a healthy economy. Lack of competition drives prices up and quality and selection down,” said Benson Mayor Joe Konrad. “Competition also keeps the labor market healthy. Rural areas, especially, cannot afford to be burdened with the effects of a merger of this magnitude.”  

Gallego concludes the letter by stating that he has “heard directly from my constituents regarding the availability and affordability of food, as well as the disproportionate effect that this merger could have on rural communities,” which is why he urges “the FTC to oppose this acquisition.” 

Click here to read the letter. 

Original source can be found here.