Kroger boosts pledged savings to shoppers to $1B in Albertsons merger, loses union support

Kroger said Thursday it would double the promised savings to consumers to $1 billion if its controversial $25 billion merger with Albertsons were approved.

In the fall of 2022 as they pushed for the merger, the Cincinnati-based company pledged it would "invest" $500 million to lower grocery prices. The new figure comes as the companies face resistance to the merger.

"After the merger closes, Kroger will invest $1 billion to lower Albertsons’ prices, consistent with Kroger’s track record of fighting inflation and providing value to customers,” Kroger spokeswoman Erin Rolfes said Thursday, adding the increased number is the result of "increase opportunities to generate efficiencies to invest back in customer prices, associate wages and store experience" as the grocer got closer to completing the deal.

Kroger's assurances haven't been enough for regulators: the Federal Trade Commission as well as numerous states attorneys general have sued to kill the proposed deal that would combine Kroger with its Boise, Idaho-based rival.

Regulators, workers, consumer advocates have expressed concerns the merger would reduce grocery industry competition, lead to layoffs and ultimately lead to higher prices for shoppers. Kroger and Albertsons have insisted the deal would do the opposite.

In April, Kroger and Albertsons announced they'd agreed to sell off 579 stores to Piggly Wiggly operator C&S Wholesale Grocers as part of a divestiture deal designed to mollify antitrust concerns.

Despite Kroger's promises that no front-line workers would lose their jobs - the United Food and Commercial Workers International Union (UFCW) and several chapters have urged regulators to block ther merger. Also on Thursday, the one local chapter to endorse the deal, Local 555, changed its mind.

The union, which represents 18,000 workers in hundreds of stores in Oregon, Washington, Idaho and Wyoming, retracted its endorsement amid contentious labor negotions for a new contract. Fred Meyer, a Kroger subsidiary, issued a press statement saying it had kept promises to workers that angered the union, which noted it had simply complied with some terms of its contract while ignoring others.

"They have a proven track record of not living up to their obligations, and are falling short at the bargaining table," Miles Eshaia, a Local 555 spokesman said, adding the union is now suing the company over unfulfilled contract terms. "As a result, we are no longer in support of the Kroger-Albertsons merger for Oregon, Idaho and Washington."

This article originally appeared on Cincinnati Enquirer: Kroger said shoppers will save $1B if Albertsons merger approved