Why is Kroger buying Albertsons, and how will it affect shoppers?

Kroger CEO Rodney McMullen in the products section of the Oakley Kroger Marketplace.

Kroger’s plan to acquire supermarket rival Albertsons in a nearly $ 25 billion deal would create a grocery giant with more than 4,500 stores in 48 states.

On Friday, Kroger CEO Rodney McMullen told The Cincinnati Enquirer, part of the USA TODAY Network, what he thought the deal would do for buyers, workers and Cincinnati. Here are the highlights:

How will the Kroger-Albertson deal affect shoppers and products on store shelves?

McMullen: “A lot of savings on the supply chain will really help improve product freshness because we’ll have warehouses closer to the stores and you’ll be able to take a day or two off the cycle for those fresh produce too. … When I look at their brands (Albertsons distributor label), they have done a great job. … Between the two companies, we have an extraordinary portfolio. “

He said Kroger studied Albertsons’ O Organics brand when he created his own SimpleTruth label which is now a $ 3 billion brand. Private label or house brands are expected to be key tools in attracting and retaining customers as more shoppers turn to generic store brands to offset the cost of inflation. Together, Kroger and Albertsons sell $ 43 billion in private label products annually.

Merger Details: Kroger will acquire Albertsons in a $ 24.6 billion deal

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