Grocery store giants Albertsons and Safeway to merge
Some big changes might be happening at your neighborhood marketplace. HLN reports two of the country's biggest grocery stores are merging.
'Do you have an Albertsons or a Safeway near you? Albertsons is buying Safeway. No stores are expected to close. So it could create a chain of 2,400 stores with a quarter million employees.'
With that many stores, the chain is poised to become a major competitor to its rivals.
"The two companies say the merge will enable them to cut costs and offer competitive prices to consumers."
According to Bloomberg, the companies also expect the $9 billion deal will allow them to '...expand their reach amid mounting competition from Wal-Mart Stores Inc. and warehouse clubs, as well as online food sellers and delivery services.'
But one commenter on a KOMO article expressed concerns over the merger, saying:
'This is really bad news. Less competition means higher prices and less selection.'
KOMO did speak with one industry consultant- who thinks there's likely nothing to fear about the deal.
'I don't know that you're going to see them have the ability to actually raise prices in any way even though they'll be bigger and there will be more concentration.'
There are reports the Federal Trade Commission will likely require the newly merged chain to sell off some stores. If that's the case, others can buy them and diversify the market, keeping prices balanced.