With the announcement of a merger between two of the largest grocery store companies in the nation, one of the businesses said Friday that customers should expect lower prices.
“Consistent with prior transactions, Kroger plans to invest in lowering prices for customers and expects to reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers,” said Kroger in its announcement of a merger with Albertsons.
Both companies own many grocery store brands, including Kroger’s Mariano’s and Ralphs, as well as Albertsons’ Jewel-Osco and Vons. According to Kroger, the merger creates a combined collection of nearly 5,000 stores, 66 distribution centers, 52 manufacturing plants, close to 4,000 pharmacies and more than 2,000 fuel centers, along with a a customer reach of 85 million households.
“The combination creates a premier seamless ecosystem across 48 states and the District of Columbia, providing customers with a best-in-class shopping experience across both stores and digital channels, said Kroger.
News of lower prices should come as a relief for these shoppers, as the U.S. Bureau of Labor Statistics announced Thursday that the Consumer Price Index had risen 0.4% in September, even more than the 0.1% increase in August. Over the 12-month period covered in the BLS report inflation had increased by 8.2%.
Albertsons and Kroger will also have a combined workforce of 710,000 associates.
“Both Kroger and Albertsons Cos. are anchored by shared values focused on ensuring associates, customers and communities thrive,” said Kroger.
Going forward, the company also plans to invest an incremental $1.3 billion into Albertsons Cos. stores “to enhance the customer experience,” and to “build on its recent investments in associate wages, training and benefits.”
Additionally, the companies said the merger is expected to allow stores to offer: fresher foods, faster; a wider selection of brands and improved, tailor-made customer experiences.
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