Both a federal judge and a state judge have blocked the $25B Kroger-Albertsons merger, a win for shoppers, workers, and small businesses.The Federal Trade Commission (FTC) argued that the merger would eliminate head-to-head competition, leading to higher prices, reduced food quality, and fewer choices for consumers. Thankfully, Judge Adrienne Nelson agreed, calling the merger “presumptively unlawful.” While the two grocery chains could have chosen to pursue the merger in FTC’s administrative processes, the proposed deal fell apart when Albertson’s sued Kroger immediately following the judges’ decisions, saying it didn’t do enough to secure regulatory approval for the $24.6 billion agreement.
Earlier this year, RAFI released the Grocery Gap Atlas in conjunction with the University of Chicago’s Data Science Institute. This interactive geospatial analysis tool is designed to illustrate the correlation between grocery concentration and food insecurity. RAFI conducted a case study that found that a merger between Kroger and Albertsons would give the company outsized market power, especially in the Northwest United States.
“Using the Grocery Gap Atlas, we analyzed the impact of Kroger’s acquisition of Albertsons on the northwest United States — specifically Washington, Oregon, Idaho, Montana, Colorado, and Wyoming — where Kroger and Albertsons as separate chains overlap and compete significantly. Within the six-state U.S. Northwest region we analyzed, we found that the regional Herfindahl-Hirschman Index (HHI) would increase from 1440 to a highly concentrated 2620* if Kroger’s acquisition of Albertsons were allowed to proceed,” write Melanie Canales and Aaron Johnson in the case study.
This decision to block the merger is a reminder that strong antitrust enforcement matters. Protecting local communities from corporate consolidation ensures that essential resources — like food — remain affordable, accessible, and equitable for all. This victory supports the fight for fairer markets that prioritize people over profit.
We remain committed to uplifting small farmers, independent grocers, and food justice advocates working for a more equitable food system. Let’s keep pushing for a future where local communities thrive!
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*The HHI (Herfindahl-Hirschman Index) is a way to measure how much control a few companies have over a market. Low HHI = Lots of competition (good for consumers) and High HHI = Few companies control the market (bad for consumers)