Kroger responds to 'lost wages' merger report: ‘Poorly sourced analysis’

Kroger is firing back after a report from the Economic Policy Institute claimed a merger between the Cincinnati-based grocer and Albertsons would cost workers over $300 million in lost wages annually.

Responding via email to Supermarket News about the lost wages story, Kroger does not mince words:

“The conclusions of the Economic Policy Institute article are erroneous and based on a faulty, biased and poorly sourced analysis that ignores both companies’ long track record of investing in associates. The report also egregiously ignores Kroger’s public commitment to invest an additional $1 billion to increase wages and expand industry-leading benefits starting on day one following close. This commitment builds on the incremental $1.9 billion Kroger has invested in wages and comprehensive benefits since 2018. Higher wages and more opportunities for our associates would help all grocery workers by raising the bar for compensation in areas in which we operate.”

The Institute also made several other findings, and it comes at a time when Kroger and Albertsons, which is headquartered in Boise, Idaho, are trying to calm concerns over the $24.6 billion merger.

The CEOs of both Kroger and Albertsons spoke out about the ramifications of the potential merger deal between the two companies in an op-ed published April 28 in the Cincinnati Enquirer.

Related:Amazon could look to acquire Kroger, Albertsons stores

In a joint opinion piece, both Kroger CEO Rodney McMullen and Albertsons CEO Vivek Sankaran addressed what they refer to as the three “myths” of the merger deal — all of which directly address either store employee concerns or consumer concerns.