Albertsons-Kroger Merger Would Help Lower Costs & Prices
From Burt Flickinger's NEW YORK TIMES interview with JULIE CRESWELL about the potential Kroger-Albertsons merger: Some industry analysts said a merger was necessary for Albertsons and Kroger to compete against the big-box stores. In California, for example, supermarkets had 95 percent of the retail food market 25 years ago, said Burt Flickinger III, the managing director of Strategic Resource Group, which works with the supermarket industry. Today, he said, that share is down to 35 percent.
“These two companies can combine their skills and scale and improve their buying or procurement power relative to Amazon, Costco or Walmart,” Mr. Flickinger said. “You really need the combination to lower the operating costs and, at the same time, give them more leverage to decisively lower prices to shoppers.”