Grocery store giants Albertsons and Safeway to merge

Before you go, we thought you'd like these...
Before you go close icon
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.'

4 PHOTOS
Giant supermarket merger
See Gallery
Grocery store giants Albertsons and Safeway to merge
MOUNTAIN VIEW, CA - MARCH 05: A sign stands outside of a Safeway store on March 5, 2014 in Mountain View, California. Private equity firm Cerberus Capital Management LP is reportedly close to finalizing a deal to purchase Safeway Inc., the nation's second largest grocery chain, for an estimated $9 billion. (Photo by Justin Sullivan/Getty Images)
Customers walk in front of a Safeway Inc. store in Denver, Colorado, U.S., on Thursday, Feb. 13, 2014. Safeway Inc. is scheduled to release earnings figures on Feb. 19. Photographer: Matthew Staver/Bloomberg via Getty Images
UNITED STATES - MARCH 15: An Albertsons store in Littleton, Colorado is pictured on March 15, 2005. Albertson's Inc., the second-largest U.S. supermarket chain, said fourth-quarter profit rose 49 percent, helped by an acquisition. The company's shares fell after Albertson's forecast 2005 profit below analysts' estimates. (Photo by Matthew Staver/Bloomberg via Getty Images)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE


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.
Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside
If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic
Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts