A partnership between Kroger and Albertsons is in the works, and the result would be a superstore second in size only to Walmart. The merger of the two largest grocery chains in the United States may have three effects. It might result in lower profit margins for smaller, independent retailers and some suppliers, more rivalry for bigger firms, and potential future growth in consolidation.
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More than 160 communities would have more than 70% of the supermarket market under Kroger and Albertsons’ control. With regard to farmers, restaurant employees, and neighbourhood grocers, the new organisation would be more powerful. According to Numerator.com, digital sales at Albertsons increased 36% in the second quarter of 2022. There are now roughly 20 automated customer fulfilment centres and other facilities thanks to Kroger’s relationship with Ocado Group. Such mergers could hasten the adoption of e-commerce and big data technologies in the F&B sector.
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