Kroger, Albertsons Washington trial: Day one

During opening statements of Washington state’s case against the Kroger, Albertsons merger Monday, attorneys representing the state’s attorney general’s office made the argument that if the $24.6 billion merger deal goes through, it could negatively alter the grocery landscape in Washington State.

“Selling and closing stores is on the table,” said Glenn Pomerantz, an attorney with the Los Angeles-based Munger Tolles law firm, which was hired last year by the state AG’s Office to help with the lawsuit. 

The Seattle Times reported the opening statements, which included Albertsons attorney Enu Mainigi speaking to the “layoffs and store closings and ... exiting certain markets altogether,” that he claims would have to happen for Albertsons if the merger deal doesn’t go through.Kroger owns QFC and Fred Meyer stores in Washington, while Safeway and Haggen fall under the Albertsons’ umbrella. 

The Kroger and Albertsons brands account for about 50% of all grocery sales in the state, according to The Seattle Times.

The state also has 124 stores as part of the merger’s divestiture plan with C&S Wholesale Grocers, and lawyers believe it is not out of the question that many of the locations could be resold or even closed.

Kroger and Albertsons attorneys countered by stating the merger deal would prevent store closures. Prices would go down as well, and mega competitors Walmart, Amazon, and Costco would be kept in check. Lawyers continued to emphasize that large retailers are already negatively impacting the grocery industry.

The separate federal case against the Kroger, Albertsons merger wrapped up in Portland, Ore. on Tuesday. The Cincinnati Business Courier reported that market analysts said they believe the deal will not be approved.