Los Angeles City Councilmembers Oppose Proposed Albertsons-Kroger Merger
ICARO Media Group
In a strong stance against the proposed mega-merger of grocery giants, five Los Angeles councilmembers introduced a resolution on Friday to formalize the city's opposition. The resolution aims to send a clear message to the city's federal partners that Los Angeles is unequivocally against the merger between Albertsons and Kroger, which would impact a total of 579 stores, including 63 locations in California.
During a news conference, Councilwoman Traci Park, along with Councilmembers Heather Hutt, Tim McOsker, John Lee, and Hugo Soto-Martinez, expressed concerns about the merger's potential anti-competitive nature, higher prices for consumers, and adverse effects on workers and communities across the city.
McOsker emphasized that they are opposing the merger because it would be detrimental to consumers, constituents, families, and workers both now and in the future. The proposed merger has already faced multiple lawsuits, and the Federal Trade Commission has challenged it, citing concerns about higher grocery prices and potential negative impacts on workers due to reduced competition.
Kroger's CEO reassured employees at all affected stores earlier this year that there would be no closures, and frontline employees would retain their jobs if the merger proceeds. The plan is to spin off the affected locations to C&S Wholesale Grocers. However, the council members disputed these claims, raising questions about the fate of 14 stores in Los Angeles that are slated to be sold to C&S Wholesale Grocers—a chain with no prior presence in the city.
Councilwoman Park voiced concerns about these stores being sold, closed, or transitioning away from union labor, potentially leading to future development on the underlying real estate. Among the 14 stores, three are situated in Park's district, including West L.A., Venice, and the Pacific Palisades. Councilwoman Hutt echoed these concerns, highlighting the impact on a community-oriented Albertsons located in Central L.A.'s Koreatown.
Monique Hightower, an Albertsons clerk and member of the United Food and Commercial Workers Local 770 Union, joined the council members to shed light on the challenges faced by supermarket employees. She emphasized that if the merger were to proceed, it could result in store closures, layoffs, and higher prices for customers.
Despite facing legal challenges filed by both state and federal regulators, the proposed merger is far from being finalized. Councilwoman Park underscored the opportunity to influence the outcome through continued engagement with federal partners and the ongoing litigation involving 11 attorney generals in the United States.
As the resolution is introduced to formalize Los Angeles' opposition to the Albertsons-Kroger merger, the city councilmembers are determined to protect consumers, workers, and communities from the potential negative consequences of this consolidation in the grocery industry.