CINCINNATI, OH - The proposed Kroger and Albertsons merger continues to create a wave of initiatives and conversations as it progresses. Most recently, Kroger has committed to lowering prices following its proposed merger with Albertsons.
"We believe the way to be America's best grocer is to provide great value by consistently lowering prices and offering more choices. When we do this, more customers shop with us and buy more groceries, which allows us to reinvest in even lower prices, a better shopping experience, and higher wages," said Rodney McMullen, Chairman and Chief Executive Officer of Kroger. "We know this model works because we've been doing it successfully for many years, and this is exactly what this merger will bring customers—lower prices and more fresh, affordable choices."
With the commitment to providing value for the consumer, it does beg the question: How will this move impact suppliers who are also dealing with the reality of unprecedented costs and inflation?
The strategy of committing to bring consumers lower prices is not new to Kroger, as the retailer pointed out in a recent release. It reflected on investing to lower prices consistently since 2003, resulting in a reported $5 billion in customer savings and providing more affordable products to families across America.
Kroger also offered a further breakdown, highlighting its commitment and strategic approach to this announcement:
- Consistently lowered prices and improved the customer experience during previous mergers
- Made clear, consistent commitments to lower prices and improve the customer experience post-merger
- Will become more competitive and able to invest even more to support customers and over 700,000 associates by combining with Albertsons
To learn more about the company's previous successes with this strategy, click here. You can also dive deeper into the proposed merger between Kroger and Albertsons via a dedicated page by the company here.
While Kroger pointed to its reduced profits to ensure groceries remained affordable for families across the U.S., working to lower prices over the last two decades and reducing its gross margin by 5 percent, it named Amazon, Ahold Delhaize, Walmart, and Dollar General in increasing gross margins by 22 percent, 4 percent, 1 percent, and 2 percent, respectively, during the same time period.
Keep checking back with AndNowUKnow as we continue to report on the merger and its impact.
