Ask Prof Wolff: Impact and Relevance of Kroger/Safeway Merger

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A Patron of Democracy at Work asks: "Can you comment on the upcoming merger between Kroger and Safeway-Albertsons? I live in Seattle where nearly all of the grocery stores are owned by those two companies. I'm concerned that the merger will create an effective monopoly and that my food costs will go even higher. Thanks!"

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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[joeymurdazalotmore]

Capitalism is a double speak kinda word for monopoly slavery, economic wage or otherwise, in fact capitalism strives to monopolize, look at bezos, that's not capitalism that's leverage an monopoly making at it's quickest and most stunningly quick take over

[clarestucki]

Wolff is obviously correct in proclaiming the fact that competition is essential to protect consumers from being taken advantage of by monopolists. Basic law of economics. But what is his point in this specific case (Kroger/Albertson's merger)?? He admits right up front that there will still be plenty of competition in the grocery business (Walmart and many others). This rant is just more meaningless blather.

[helengarrett]

To illustrate what the merger of Kroger and Albertsons means to me I have been comparing prices in the grocery stores around my area. Before the pandemic I purchased my favorite brand of yogurt at 10 for $10.00. This week the carton was 2 oz. smaller and the price was $1.75 each.

Worse, there are three Ralphs stores in my area which are owned by Kroger or one Pavillions which Albertsons owns along with Safeway, Vons and Pavillions. So, when these two monster companies merge I am left with only one alternative which is Trader Joe's which doesn't have the price structure for my budget on grocery basics. This merger has me over a barrel. This is severe monopoly. I simply do not believe that the price of grass and cattle feed or the cost of gasoline accounts for the kind of inflation I see at the grocery store. Kroger is profitable. In fact, Kroger is so profitable that it can buy the whole Albertsons company.

Inflation is obviously caused by big corporations like Kroger, but also by energy companies, by all kinds of conglomerate companies that are big enough, wealthy enough and powerful enough that they can simply decide how to price product without ever worrying about markets or competition. Next time someone tries to defend capitalism by talking about markets and competition send them to Ralphs to buy yogurt at inflated prices or even beef neck bones for soup. Not much meat on those and no marrow either. Just gristle and bone mostly. They were $3.99/lb.

[RJ-peuj]

I work for Kroger; it is one of the Most Chicken Shag co. To beat you out of a dime they would spend 100.00 dollars.

[cheri]

What a magnificent articulate man you are Professor Wolff for teaching us everyday these economics. ❤️

[emiebex]

More Corporate Consolidation, by eliminating competition you'll be forced to pay whatever Kroger wants, and if it too expensive you have no other options.

[EmeraldLavigne]

Capitalism despises competition.

Monopoly is more profitable.

[Inpreesme]

We will all suffer the consequences of being lied to again about the value of corporate mergers with how “everyone” will benefit, billionaires and millionaires are not “everyone” The middle class continues to shrink and for the rest of us is becoming an unattainable dream.

[patriayvida]

I live in the Southeast, we don't have Safeway here but Kroeger's is the king & that's where I normally do my groceries. The where I shop regularly, never recovered from Covid; lately, no matter what time you go in, the shelves are empty, pRticularly, the produce section. Speaking with another costumer, I learned they had fired half the crew (my guess is that they had tenure & were earning too much). I'm not shopping there anymore & no doubt I'm not the only customer they have lost. At the rate they're going, the store will be closing soon. There's a saying in Spanish "avarice breaks the bag" & that's cettainly appears to br the case here. And these are the few geniuses (the best & brightest, according to Obama) leading an entire nation by the nose & over the abyss.

[mousc]

Fred meyers and safeway are unionized where I am at. Many of the stores are across the street from each other. I imagine 50% of those stores will close after the merger.

[drakekoefoed]

the many does not become the few only by innovation, etc. any crime they get away with is just as much a competitive advantage as coming up with better ideas. since the very big ones get away with almost all their crimes, the few at the end include nobody honest.

the actual competition spoiling a trust is not for sure at all. coke and pepsi alternate their sales. i have seen no sign of real competition in half a century. nonsense like the new coke, but both have to advertise or sugar water would fall out of fashion.

[quatreraberbawinner]

I worked for Kroger for 5 years, they're an evil company

[Roedygr]

there has never been a merger that benefitted the public.

[energizme]

In my area / county, the only 2 major grocery stores are Kroger (City Market) & Safeway. So, these two stores merging really sux. Politicians are constantly talking about, "kitchen table issues." THIS IS A Kitchen table issue. I do not understand HOW THIS MERGER is legal. America has gone completely off the rails. No More Competition leads to stagnation. Innovation is driven by competition. Imagine how fast green energy production & storage of energy created was being driven by competition. Companies or innovations trying to out compete each other to win because entire countries will be completely energy independent in near future using only the best tech. Tech constantly getting better due to healthy competition.

America outsourced almost all industry more that a decade ago. Almost all GDP is due to retail sales (buying of goods, massive conglomerates owned by only a handful of actual companies), privately owned utility companies (electric, natural gas, gasoline & Television/Cable/Internet ISP's), Consumable Service type (Restaurants) & Entertainment (Producing & Musicians/actors). Oh, and the greatest thievery of all; Politicians (which through self-dealing laws and tax breaks, create more millionaires than other industries)

[jeffherringa]

Kroger already bought out or merged with Fry's (Phoenix) and Pick 'n Save (Milwaukee). These are two examples that I know of because I have lived in both cities in Arizona and Wisconsin. Safeway/Albertsons would make Kroger very competitive with Amazon or Walmart even if it doesn't surpass Amazon or Walmart in sales and services in the grocery/retail business area. Just a note here.

[shmo]

Immigrants?
Maybe newly arrived and least educated migrants or perhaps you were referring to illegal migrants.
Otherwise most of us, in one way or another, can be categorized as migrants.

In general I really like your YouTube videos.

[geraldmeehan]

Not really much of a Safeway presence in my area but Kroger/Jay C is huge. Only 1 Walmart in county compared to 1 Kroger and 2 Jay C's

[mkl_]

If corporations are people in the U.S. why do we in allow for corporate slavery? How can one artificial person own another artificial person? Mergers and acquisitions are a way to increase profits without making or doing anything useful.

[LONEWOLF..-S-T-L]

INTERESTING STUDY 🤔 ... GREAT TALKING POINTS PROFESSOR WOLFF AS USUAL SIR 💯👍🏾

[janncoons]

We got rid of monopolies back in the 90s what are we doing 10 steps forward and 200 backward again!