Roughly 25% of all dollars spent on groceries in the United States are spent at Walmart, according to data provided by Euromonitor. Walmart traditionally has used its clout to demand the lowest possible prices from packaged-food and beverage companies, leaving rivals at a disadvantage in their own negotiations with suppliers. Groceries constitute roughly 55% of Walmart's annual sales. The news was first reported by Bloomberg.Ĭonsultant Burt Flickinger, who holds shares of both Kroger and Albertsons, said a merger would give the two supermarket operators more buying power, making it easier for them to compete with Walmart Inc (WMT.N). Neither Kroger nor Albertsons immediately responded to requests for comment. A deal would create a combined company with a market valuation of about $47 billion, representing one of the biggest mergers in recent years in the retail space. grocery chains and potentially lead to higher prices for American shoppers. Some critics noted that a supermarket merger would lessen competition among U.S. Major consumer products companies across the world have announced plans to boost prices at a faster pace as they seek to curb the impact of soaring raw materials costs on their margins.
1 and 2 standalone grocers, if reached, could provide the retailers with a leg up in negotiations with consumer-product makers such as Procter & Gamble (PG.N) and Unilever (ULVR.L) at a time of steep price hikes.Ī deal could be announced as soon as this week if the talks do not fall apart, said the sources, who requested anonymity as the discussions are confidential. grocery company Kroger Co (KR.N) is in talks to merge with smaller rival Albertsons Companies Inc (ACI.N) in a tie-up that would create a supermarket titan, people familiar with the matter said.
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