Indie grocers respond to Kroger-Albertsons merger

Response has been powerful yet mixed from independent grocers, following the news on Oct. 14 that Kroger and Albertsons Cos. had entered into a definitive $24.6 billion agreement to merge two of the largest grocery chains in the country. 

Barons Market, a Southern California-based independent grocer with nine stores, isn’t rattled. Instead, the indie sees it as an opportunity to further differentiate.

“A Kroger-Albertsons merger puts independent grocers like Barons Market in a unique position to nurture and cultivate connections with potential shoppers, current customers and the community,” said Rachel Shemirani, senior vice president of Barons Market, in a statement. “Simply put, we do things differently and better than the large grocery stores.” 

Shemirani also sees the Kroger-Albertsons deal, which is expected to close in 2024, as an opportunity for independent grocers to attract talent.

“When big grocery store chains merge together, these organizations tend to focus on the bottom line rather than their customers and employees,” she said. “As with any merger, layoffs or potential store closures could be on the horizon. So, what do you do when your favorite grocery store closes or your grocery store bestie is laid off? You search for that sense of community elsewhere.” 

Barons Market prides itself on providing an “exceptional” selection of fresh produce, mostly from local farms, “at rock-bottom prices.” It also offers a “10-minute shopping experience” in each of its nine stores in San Diego and Riverside counties. The grocer says it contributes more than $300,000 per year to community organizations.

“If and when this merger is finalized, it will shine a spotlight on the flexibility, heart and passion that independent grocery stores have,” Shemirani said. “Giving us the opportunity to potentially open new stores, attract and retain quality talent and better serve our community.”

National Grocers Association is taking a different view.

The national trade association, representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry, believes a Kroger-Albertsons merger will put indies at a competitive disadvantage.

"A merger of the nation’s top two grocery chains should raise serious questions about a single supermarket giant gaining unprecedented dominance over the nation’s food supply chain," Greg Ferrara, NGA president and CEO said in a release. "A merger would not only put smaller competitors at an unfair disadvantage, but also increase anticompetitive buyer power over grocery suppliers, which ultimately would harm consumers.

“It is our expectation that this deal will receive rigorous scrutiny from federal antitrust enforcers,"

 added Ferrara.