A proposed merger between two of the biggest names in the grocery business has Arizonas new Attorney General gathering information from consumers like you to decide if she should try to stop it.
The company behind Frys is trying to merge with the company behind Safeway, and Arizonas Attorney General is trying to decide if that merger would be a bad deal for you.
Right now, Frys and Safeway compete for your grocery dollar while they try to stay ahead of Walmart, a newer, but fierce competitor in the grocery business. But Frys, through its parent company Kroger, wants to merge its long list of grocery brands with Albertsons-Safeway and its long list of brands.
That has attorneys general across the country considering whether the merger will hurt consumers, and whether they should sue to stop it. Arizona Attorney General Kris Mayes is visiting cities across Arizona asking consumers what they think.
M.E. Martinez thinks a merger will make prices go up, choices go down and leave blighted holes in neighborhoods.
I have Safeway and Frys very close by and one of them will goIm sure.
Reporter Craig Smith asked: When you look at those stores can you look at them and say, Yeah, I can see where theyre competing and that benefits me?
Martinez: Absolutely.
People commenting on KGUN9s Facebook and Instagram do not like the merger. On Instagram, Heather Farrisco said in part: …A merger of this magnitude is going to reduce competition and drive up prices even more. We dont need any more monopolies in this country. This harms the people who shop at these stores.”
Kroger says a merger will help consumers come out ahead. One company release says in part, Kroger plans to invest in lowering prices for customers and expects to reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers.
Kris Mayes says shell hold more listening sessions like the one in Tucson before she decides whether to fight the merger.
Shes not sure competing with Walmart is reason enough to merge.
These two grocery store chains are still making money. They operate 250 stores in the state of Arizona. I think they have to demonstrate that there is a reason for this combination, especially when it’s going to create so much power in the hands of one company, and especially given the concerns about them shutting their stores down.