Colorado Politics

Kroger-Albertsons merger a win for Colorado consumers | OPINION

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Mike Coffman

111524-cp-web-oped-CoffmanOp-1

Mike Coffman



The proposed Kroger-Albertsons merger has become a critical issue in Colorado, where both companies maintain a significant presence with stores such as King Soopers, City Market, Safeway and Albertsons scattered across our state.

As mayor of Aurora, I support the Kroger-Albertsons merger because it benefits our community. Safeway has been a cornerstone of our grocery shopping landscape in Aurora. However, Albertsons has made it clear without the merger moving forward they would have to rethink their entire business model to survive. This would likely lead to store closures, layoffs and exiting markets completely. A merger would ensure stability for our local stores and promise lower prices for our residents.

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Albertsons has publicly stated it is struggling to compete in today’s rapidly evolving grocery industry, which is dominated by retail giants like Walmart, Amazon and Costco. An analysis by Solomon Partners showed these three companies control 48% of the grocery market in Colorado alone. During the past decade, Kroger and Albertsons have both seen their market share decline while Walmart and Costco have gained significant ground, leading Albertsons to warn without this merger, they may have to close stores and cut jobs to stay afloat.

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For Aurora, this scenario could be disastrous. Our five Safeway stores considered for divestiture provide jobs, groceries and a sense of community for local residents. Should Albertsons be forced to close some of these stores, it would create a ripple effect, potentially leaving our neighborhoods underserved and even creating food deserts in certain parts of the city. This merger provides a solution that ensures all Safeway locations in Aurora will stay open, and even better, C&S Wholesale Grocers — a trusted national grocery distributor — will take ownership of these stores.

C&S is also committed to preserving Safeway’s identity in Aurora. They will license the Safeway name, meaning customers won’t notice a difference in branding or experience. But the big change they will notice is at the checkout line. Kroger has committed to a $1 billion investment in lowering prices across Albertsons locations, and $40 million of that will go directly into stores in Colorado. Currently, Albertsons’ prices are 10% to 12% higher than Kroger’s. That’s no small margin. A merger would result in lower prices across the board, making groceries more affordable for hardworking families in Aurora.

The truth is grocery shopping today looks much different than it did 10 or 20 years ago. Customers increasingly turn to one-stop-shop retailers like Walmart or Costco or online platforms like Amazon for their groceries. Kroger and Albertsons have been left to compete with shrinking resources. This merger gives them the scale they need to keep prices low, stores open and workers employed — all while preserving the competition that benefits consumers.

Colorado Attorney General Phil Weiser has expressed concerns about the merger, but even he has acknowledged it could result in lower prices for consumers. In a market increasingly dominated by non-traditional grocers like Walmart, this merger allows Kroger and Albertsons to level the playing field, giving them the ability to compete with the changing landscape of Colorado’s grocery market.

In Aurora, the stakes are high. We need to ensure our grocery stores remain open, our workers stay employed and our families get the best prices possible. The Kroger-Albertsons merger is the right path forward for Aurora and for Colorado. By supporting this merger, we can protect our stores, preserve jobs and bring much-needed price relief to the families who need it most.

This merger keeps stores open, secures employees’ jobs and brings a trusted owner in C&S to Colorado. Let’s keep Colorado and Aurora’s grocery landscape strong, competitive and affordable for everyone.

Mike Coffman is mayor of Aurora.

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