Day One of the Kroger and Albertsons Trial in Washington

On Monday, during the opening statements of _Day One of the __Kroger and Albertsons _Trial in Washington, attorneys from the state’s attorney general’s office argued that the proposed $24.6 billion merger could significantly disrupt the grocery industry within the state. They suggested that if the merger were to proceed, it might lead to the sale or closure of stores, potentially altering Washington’s grocery landscape.

Glenn Pomerantz, an attorney from the Los Angeles-based Munger Tolles law firm, which was hired by the state AG’s office to assist with the lawsuit, emphasized that “selling and closing stores is on the table.” This concern was echoed by Albertsons’ attorney, Enu Mainigi, who mentioned that if the deal does not go through, layoffs and store closures may be inevitable, with Albertsons potentially exiting certain markets entirely.

In Washington, Kroger operates QFC and Fred Meyer, while Albertsons owns Safeway and Haggen stores. Together, these brands represent roughly 50% of all grocery sales in the state, according to The Seattle Times.

As part of the merger’s divestiture plan, 124 stores are slated to be sold to C&S Wholesale Grocers. However, attorneys for the state believe these stores could eventually be resold or even closed, raising additional concerns about the impact on the local grocery market.

In response, attorneys representing Kroger and Albertsons argued that the merger would, in fact, prevent store closures and result in lower prices. They also claimed that it would help keep large competitors such as Walmart, Amazon, and Costco in check, noting that these mega-retailers are already negatively influencing the grocery industry.

While the Washington trial is underway, a separate federal case regarding the Kroger and Albertsons merger concluded in Portland, Oregon, earlier this week. According to The Cincinnati Business Courier, market analysts have expressed skepticism, suggesting that the merger deal may not be approved.