Alaska’s two biggest grocery chains to sell stores as part of merger. This business professor explains why.

By Casey Grove
Source: Alaska Public Media

The two biggest grocery store chains in the country, and Alaska, are moving forward with their multi-billion-dollar merger, and they’ve announced a plan to sell more than a dozen stores in Alaska to a third company.

That proposal by Fred Meyer parent company Kroger and Carrs Safeway owner Albertsons, to sell 14 Safeway stores in Alaska to C&S Wholesale Grocers, is designed to satisfy the Federal Trade Commission.

The worry is that if a single company controls grocery sales in a particular community, the lack of competition would lead to higher prices for consumers and reduced bargaining power for union workers.

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