Worried About Smith’s, Albertsons Merger? Nevada AG Is All Ears
Hey, lets go down the street to Fresh & Easy and grab some ingredients for dinner tonight. Ooh, Vons has a better deal, let’s go there! These are sentences you used to be able to say. But while some grocery stores went away (Fresh & Easy) others merged (Vons and Albertsons). Now a pending merger between Albertsons and Smith’s parent company Kroger is raising eyebrows with Nevada’s lead attorney.
Nevada Attorney General Aaron Ford is holding listening sessions with concerned citizens and asking for online opinions before deciding how to approach the merger. So far over half a dozen states Attorneys General have banded together to ask the Federal Trade Commission (FTC) to put the kibosh on the merger. Nevada is weighing out doing the same.
The first session took place Tuesday at Las Vegas City Hall. Future sessions include:
- Boulder City – Tuesday, August 29th at 11am at Boulder City Council Chamber
- Pahrump – Thursday, August 31st at 11am at Pahrump/Tonapah Board Of County Commission Chambers
- Henderson – Wednesday, September 13th at 10am at Henderson City Council
- North Las Vegas – Wednesday, September 13th at 1pm at North Las Vegas City Hall
What is so bad about a Smith’s and Albertsons merger?
You’ve heard the word “merger” about a million times, so what’s so wrong about this one? It all has to do with market concentration. If you have only one broadband internet provider, you know you are paying more on your bill than areas with two or more options. Grocery bills have the potential of heading in the wrong direction with fewer players making competitors, you know, compete.
While the merger wouldn’t reach the legal definition of a “monopoly,” it would be close to one in Southern Nevada. Other players nationwide like Stop & Shop, Wegman’s and Food Lion do not do business in the area. The merger would absolutely result in certain store locations being spun off or shuttered in the valley. While an outside grocery store could come in and buy locations that the new company can no longer run, there would need to be infrastructure to do it. Nevada is land-locked and the chances of another grocer entering the market and starting new infrastructure from scratch are not incredibly high. Probably why the United Food and Commercial Workers Local 711 President is against the merger.
If you have a strong opinion one way or another, speak up at an event or in the online survey.