Announcement of merger between Kroger, Albertsons creates little reaction at local grocery stores

ST. GEORGE — A tidal wave in the business world was a mere ripple in St. George last week.

Kroger Foods announced last Friday that it plans to buy Albertsons in a nearly $25 billion deal.

According to a press release, the deal could potentially change the retail industry nationwide and impact how millions of consumers buy their groceries.  

The deal, expected to close in 2024, would combine two of the largest supermarket chains in the country and create one of its largest private employers. The two companies have a combined 710,000 workers, most of them unionized in an industry with low union rates.

Kroger operates Smith’s, Ralphs, Harris Teeter, Dillons, Fred Meyer and others, while Albertsons owns Safeway and Vons.

The Albertsons grocery store at 915 Red Cliffs Drive, St. George, Utah, Oct. 14, 2022 | Photo by E. George Goold, St. George News

Combined they total nearly 5,000 grocery stores across the country and generate more than $200 billion in sales.

St. George News visited both local grocery store locations last Friday. Afternoon traffic was slow at the Albertsons off of Red Cliffs Drive and at the second store off of Dixie Drive.

Most customers wandering the aisles had heard nothing of the merger.

“Everything costs too much as it is,” said one, eyeing the fresh produce and turning away.

Both managers were instructed to say nothing about the merger and refused to answer questions about their local history, like how long they’ve been in St. George. Or about how their customer base might possibly be impacted by a merger.

Both managers directed any and all inquiries to Albertson’s spokesperson Nancy Keane, who works out of Arizona.

Keane spoke with St. George News via cellphone and said she would pass any questions up the ladder to the communications team, which is supporting Albertsons Companies at this time.

“Nothing changes about our stores today, and our focus continues to be providing great service to our customers,” an Albertsons Companies spokesperson wrote in an email to St. George News. “The merger isn’t expected to close for many months. Until then, Albertsons and Kroger will continue to operate as two separate companies and it is business as usual.”

And it was exactly that last Friday afternoon, business as usual at Albertsons in St. George.

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Copyright St. George News, SaintGeorgeUtah.com LLC, 2022, all rights reserved.

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