Kroger's CEO says shoppers would see lower prices after the chain's merger with Albertsons

abcnews.go.com:

The chief executive officer of Kroger has insisted that merging with rival Albertsons would allow the two supermarket companies to lower prices and more effectively compete with retail giants like Walmart and Amazon

PORTLAND, Ore. — The chief executive officer of Kroger insisted Wednesday that merging with rival Albertsons would allow the two supermarket companies to lower prices and more effectively compete with retail giants like Walmart and Amazon.

Kroger CEO Rodney McMullen argued in favor of what would be the largest grocery chain merger in U.S. history while testifying during a federal court hearing in Oregon on the U.S. government's request for a preliminary injunction that would block the $24.6 billion deal.

“The day that we merge is the day that we will begin lowering prices,” McMullen said while under questioning by a lawyer representing his company.

The two companies proposed joining forces in October 2022 after Kroger agreed to purchase Albertsons. The Federal Trade Commission sued early this year to prevent the deal, alleging the merger would eliminate competition and raise grocery prices at a time of already high food price inflation.

McMullen countered that argument by saying that Albertsons prices are 10-12% higher than Kroger’s and that the merged company would try to reduce that disparity as part of a strategy for keeping customers. Walmart now controls around 22% of U.S. grocery sales. Combined, Kroger and Albertsons would control around 13%.

“We know that pricing is going to continue to go down,” McMullen said.

His statements and the upcoming testimony of Albertsons CEO Vivek Sankaran were expected to be critical components of the three-week hearing, which is at its mid-point. What the two say