HENDERSON (KTNV) — Many valley residents are voicing concerns about a proposed merger between Kroger and Albertsons.
The companies have previously announced that Kroger would be purchasing Albertsons and on Friday, the companies announced they had entered into a definitive agreement with C&S Wholesale Grocers to sell 413 stores, which includes 15 stores in Nevada.
Today, Nevada Attorney General Aaron Ford hosted several listening sessions across the valley, including Henderson, North Las Vegas, and Las Vegas. He was joined by Federal Trade Commission Chair Lina M. Khan.
RELATED LINK: How to weigh in on Albertsons-Kroger merger that would impact 15 Nevada stores
Several issues were raised during the listening session including how a potential lack of competition could lead to higher prices at grocery stores. One man brought in this week's sale ads from Albertsons and Smith's to show the difference in prices.
"Here's pork spare ribs at Albertsons for $1.46 pound. At Smith's, it's $2.77 a pound. If these groups merge, they can make the prices whatever they want it to be. These sale ads, they are the exact reason why we should have these separate companies," he said. "I understand Albertsons and Smith's are claiming they're trying to compete with Walmart on the grocery level. Walmart is the largest retailer in the world but they're not a conglomerate as this would be. This would be specifically controlling groceries and potentially pharmacies as well."
Pharmacies were brought up as one veteran said the merger could affect where she can and can't get her prescriptions.
"I get my prescriptions at Vons. They don't accept it at Smith's because they don't accept TRICARE so that would eliminate another Veterans Choice. CVS doesn't do it anymore but Walgreens does. Now, they're pushing to Walmart," she said. "We barely have a choice here we can afford. All the other small businesses have been pushed out. Medicare is the same thing."
Another man, who was a former Deputy Attorney General in California before retiring and moving to Las Vegas, said he's concerned about what happens to the stores that are sold to C&S if the merger does go through.
"They want to sell 15 stores statewide that would be divested to C&S, the parent of Piggly Wiggly and Grand Union. Knowing those companies have no presence on the West Coast or the Southwest at all, let alone any experience in cross-marketing across the country like Kroger does, suggests, to me anyway, that that issue is something that the FTC and this office should be looking at very closely," he said. "It is incredibly valuable to hear that they recognize, nine months after the merger, that they recognize there's an anti-trust problem."
Jobs are also a big concern and members of the United Food and Commercial Workers were at the meeting. Michael Gittings, the president of local chapter, 711, stated they were worried about how the merger would affect workers.
"Could you make sure through your negotiations with the companies that they could include a no closing and no layoff clause to protect the workers for multiple years to make sure communities have access to food and workers have job security," Gittings asked. "How can we guarantee the current owner of Albertsons doesn't sell pieces of the company off if this merger is defeated because we're also concerned about what happens if the merger doesn't go?"
Khan said the companies "have made promises and commitments" as part of the merger. However, she did add that's not guaranteed, which is why the deal is being scrutinized.
"Historically, enforcers sometimes have allowed mergers to go through and accept those promises and commitments. But historically, it's been very difficult to actually enforce them," Khan said. "Once you allow the merger to go through, the competition that's structurally existing in the market has gone. I think we always want to make sure we're applying the skepticism that's warranted when firms are saying allow us to merge and eliminate the competition. I think enforcers have been burned by that. Communities have been burned by that."
RELATED LINK: Union opposes Kroger-Albertsons grocery merger
Ford said that's an issue that hits close to home for him.
"I'm from Dallas and my dad worked at Safeway. When Safeway still had operations in Dallas, he worked in the produce section lining up the fruits and vegetables. Safeway pulled out one day and my dad lost his job and never recovered," Ford said. "Those things are also important for us to consider moving forward."
A few people also voiced concerns that these listening sessions were a "foregone conclusion" and that the merger would happen no matter what feedback officials got.
"Sometimes, some listening sessions are just to hear things out so nobody gets a black eye at the end of the day, saying you didn't do anything, you didn't hear us or there was nothing explained to us," said David Gomez, President of Nevada Peace Alliance. "I believe a lot of these officials tend to do things to bring comfort and ease to the community with a BAND-AID at times versus what they can and can't do. There's a lot of that red tape there."
At least 17 states are looking into the proposed merger between Kroger and Albertsons. If states and the FTC find legal reasons to intervene, the matter has to be taken to court to be settled.
"This is part of the prep work, hearing from the community. We also look at facts and data to see if it's going to create a monopoly and the impact from the competitive perspective and do all the legal work and analysis around that, in case we do have to go to court," Ford said. "At the end of the day, the Attorney General and the FTC are not the final decision makers. The courts could make the final decision."
Ford adds the decision would also have to be made quickly.
"The public information that they have made available is they want to merge by the first quarter of next year," Ford said. "So whether that's January or March, who knows. Time is of the essence. We're engaging in these conversations and we've been investigating this for months already so we have a lot of data and facts and details that we'll continue to crunch through and analyze."
Lawmakers are also asking for the community's feedback on this issue as well as what companies and brands should come to the valley. You can find that survey here.
RELATED LINK: Take Grocery Stores Merger Survey
If you missed Wednesday's meetings, there are several additional listening sessions, which are listed below.
- Sept. 14, 7 p.m. - Mt. Crest Community Center, 4701 North Durango Drive
- Sept. 18, 6 p.m. - Parkdale Recreation Center, 3200 Ferndale Street
- Sept. 20, 6 p.m. - Doolittle Community Center, 1950 J Street
- Sept. 21, 7 p.m. - Desert Breeze Community Center, 8275 Spring Mountain Road
- Sept. 27, 7 p.m. - Paradise Community Center, 4775 South McLeod
- Reno, Oct. 10, 6 p.m. - McKinley Art Culture Center Auditorium
- Reno, Oct. 12, 6 p.m. - Evelyn Mount Northeast Community Center
