DE Treasurer Davis Opposes Proposed Merger between Kroger & Albertsons
Delaware Treasurer Colleen Davis is standing in opposition of a proposed merger between Kroger and Albertsons. Davis joins six of her colleagues in calling on the FTC to oppose the merger. Davis believes the negative impact of the deal could have wide reaching effects and impact access to fresh and affordable groceries – especially in under-served communities. The proposed merger could also affect workers’ livelihoods. Albertsons currently operates 18 stores in Delaware – 15 under the Acme name and 3 under Safeway (one each in Rehoboth Beach). Kroger owns two Harris Teeter locations (in Millsboro & Selbyville).
Additional information from the DE Treasurer:
A study from the Economic Policy Institute, found that the merger between Kroger and Albertsons could result in a total loss of $334 million in wages for over 746,000 grocery store workers across more than 50 metropolitan areas. This loss translates to an average annual wage decrease of approximately $450 per worker.
Treasurer Davis expressed concerns about the potential impact on workers in both companies. Albertsons currently operates 18 stores in Delaware: 15 under the Acme name and 3 more Safeway stores, with Kroger owning two Harris Teeter locations.
“Mergers often lead to job cuts and layoffs as duplicate positions are eliminated in the name of cost savings,” Davis said. It’s crucial that we protect workers’ livelihoods and job security.”
The letter also asserts “the consolidation of the chains would diminish workers’ ability to organize and negotiate for better wages and working conditions,” stressing that by “reducing the number of outside options available to workers, the merger would significantly limit competition in hiring and retaining employees, undermining their bargaining power.
“While mergers and acquisitions can sometimes provide benefits, we must carefully consider their impact on our communities, workers, and consumers,” Davis said. “I believe that this proposed merger between Kroger and Albertsons could have far-reaching negative consequences, and I am committed to advocating for the best interests of Delawareans.”