Kroger Albertsons Mega Merger | Good Deal For Investors?

Kroger is buying Albertsons for $25 Billion dollars. The Grocery market is about to be shaken up if this deal goes through. Is this a good deal for investors? Find out in this video and I also share my improved portfolio performance.

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Kroger is the 5th largest retailer in the United States and Albertsons is the 10th. As competition grows with the likes of giants like Walmart, Costco, and Amazon, strategic moves need to be made in order to stay in business. Kroger and Albertsons will face regulatory scrutiny and many will fight this merger claiming a monopoly. Kroger says this merger will actually reduce grocery prices and be beneficial for consumers. Others say this will force small mom and pop stores to close and actually increase prices.

Whatever side you are on there is a different perspective for Investors. I use my metrics chart to share the financial data on both these retailers and see if they are good investments or not. I then provide my final thoughts on this mega merger between Albertsons and Kroger. I actually worked at one of these stores and share some unique perspectives.

Inflation has caused grocery prices to increase 13% this September from last, so this deal has a lot of angles and hurdles. One thing that this merger between these grocery giants will do is increase profits and create some negotiation power with its vendors to help margins improve and save customers money. That is how Walmart and Costco are able to provide such value to their customers. This deal will also help combine two large customer pools worth of data and create some improvement in advertisement dollars. I think retail advertisement is the one thing many are not thinking about with this merger and its the fastest growing segment. You can tell a lot from customers purchases and gear advertisements in an efficient way where advertisers will be willing to pay more.

Do you this this merger is good for Investors in either company?

Thank you for watching and have a great day!

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*This Video is not meant to be professional advice, but is rather for entertainment purposes only. Take all of my videos as my own opinion, and at your own risk. This Video is accurate as of the posting date but may not be accurate in the future. Links above include affiliate commission or referrals.

[Seoulsearch]

Good morning Mark! I once worked for a Kroger-owned chain as well. Thank you as always for the informative updates! 👍 It's so hard to place bets on just one company, even when it's a big one. I have been thinking of buying into a consumer staple ETF for a while.

[cirodirosa]

Fantastic summary.

I have KR stock which dropped on the news.

I think it is a costly deal. But, looking at the location maps you displayed, it does look like a strategic play on Kroger's part.

In the meantime, I selling some upside to get some covered call premiums.