Local Lawmakers react to failed Kroger-Albertson's merger

ELLENSBURG, Wash.-The Kroger-Albertson's grocery store merger has been blocked by a federal judge, and now Albertson's is suing Kroger for a breach of contract.

“Between letters, phone calls, conversations, hearings, I have been on this for about two years now, pushing the FTC to deny this merger," said Democratic Congresswoman Kim Schrier of the 8th Congressional District.

Congresswoman Schrier thinks that there is no chance that the Kroger-Albertson’s merge deal will happen after a Judge blocked the deal on Tuesday.

“I think this particular deal is dead," said Schrier. "I mean at this point when Albertson’s is suing Kroger, that feels like a bad divorce and I don’t think they’re getting back together again.”

In some cities, such as Ellensburg, there is a Safeway, and a Fred Meyer which is located less than one mile away from each other. These companies are owned by Albertson’s and Kroger, respectively.

“If this merger had gone into effect, where Albertson’s and Kroger stores no longer had to compete against each other to get the best apples," Schrier said. "When there’s no competition, farmers become price takers and not negotiating prices.”

Schrier thinks that C&S Wholesale Grocers, who would have taken over some of the Kroger or Albertson's-owned stores, would have been doomed to fail had this merger succeeded.

“This issue with C&S is a big red herring. That was never going to work, it was a way to try to manipulate the FTC to allow this egregiously large merger," Schrier said. "What would have happened is by bringing in this supermarket that really only has a presence in the southeast United States into Washington State where it has no footprint, they were practically doomed to fail."

Other Elected Officials have released statements about this failed merger. Senator Maria Cantwell's statement said "The Courts found what we have seen in Washington state: Large-scale grocery store mergers like this one are more likely to raise grocery prices than provide any real benefits to shoppers. And right now we need to keep taking steps to lower costs,"

“I think we’re safe from this merger, but I think we have to be on alert for other mergers that would take away competition," Schrier said.