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Retail Giant Kroger is Planning to Acquire Rival Albertsons

Industry: Retail
Current: Company Performance

Merger of two retail chain companies will create a supermarket giant which will be competing with U.S. largest retail brand “Walmart”
Deal between the two companies will be one of the biggest developments in the retail industry
Kroger is planning to spend $24.6 billion in the new development

Merger of Kroger & and Albertsons is Expected to Compete with the Top Retailer in United States “Walmart”

Walmart is the largest retailer in the United States, according to figures from the National Retail Federation, with $459.51 billion in sales in 2021. Whereas Kroger’s and Albertsons held the 5th & 10th position respectively in the year 2021. The combination of Kroger and Albertsons will significantly raise the company's combined revenue and put it close competition against Walmart.

However, the potential merger is a subject to antitrust scrutiny by regulatory authorities, due to steep hike in food prices and growing inflation.

Growing Inflation is Compelling Companies in Retail Industry to Revisit their Market Strategies

Growing inflation has resulted in shrinking profit margins for consumer product companies. To deal with shrinking profit margins, the companies have announced price hikes for their products. To combat the declining profit margins, market players are making strategies to retain their market shares and positions in the retail industry. The merger of two retail giants, Kroger and Albertsons is expected to result in creating an enormous retail business with the anticipated revenue of $200 billion, and 5000 stores. Furthermore, collaboration among two companies will reduce competition and potentially result in further price hikes for US consumers.

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