Judge Stops Smith’s And Albertsons Merger (For Now)
We have talked about it time and again. The Smith’s and Albertsons merger will have major ramifications for Southern Nevada. Smith’s and their parent company Kroger, and Albertsons who owns the Vons brand from a prior merger represent the vast majority of grocery store options here. Well, a judge just put a stop to it, albeit temporary.
Judge Adrienne Nelson of the U.S. District Court in Oregon ruled that the merger will not go forward until a Federal Trade Commission administrative judge can take a closer look at what it might do to consumers, their choices and the cost at the checkout.
How Smith’s And Albertsons Merger Could Hurt Your Wallet
If you are pinching a penny and are looking to save at the grocery store, there are apps like Flipp to compare and contrast specials on certain items. For example, one week Albertsons may have strawberries for $3.99 a box, while Smith’s would have it for $1.49 on a sale. The following week it could be pork. They are constantly competing.
Now say there is no choice. Smith’s is Albertsons and Albertsons is Smith’s (just like Vons and Albertsons has become with their Just For U sales circulars and apps). The strawberries will go on sale at times. But the incentive to drop the price that low may not be there, or the sale may not come as often.
While the Smith’s and Albertsons merger would see some locations sell to the owner of Piggly Wiggly, another supermarket chain elsewhere in America, there are no guarantees the stores would be ready to compete.
As we’ve learned in other industries (cellular service, airlines and cable providers among them), less competition seldom results in lower prices. It is nice to see a solid amount of vetting happen before they give the green, or red, light.