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The megamerger of the country's two largest supermarket chains, Kroger and Albertsons, is still in limbo, awaiting the decision of a federal court in Oregon. The federal government and several states have sued to halt the deal. They argue it would lead to higher prices for consumers and fewer options for workers. In Washington state, more than half of all grocery stores are owned by one of the two chains, so Ruby de Luna from KUOW in Seattle talked with some customers and workers, asking what they think about the possible merger.
RUBY DE LUNA, BYLINE: On a busy corner in the West Seattle neighborhood, Lisa Bath has just finished her week's shopping at a QFC, owned by Kroger.
LISA BATH: This was $100 for a bag of groceries - $100. It's basic. I have bread. I got arugula, chicken - mostly chicken and protein.
DE LUNA: Grocery inflation may have leveled off, but prices are still higher than they used to be, and Bath says her food budget doesn't go as far.
BATH: We're all having to make difficult choices that we didn't used to have to make, just to put food on the table.
DE LUNA: From the entrance of the QFC you can see a Safeway, just down the block, which is owned by Albertsons. Bath says she used to shop there but started coming to QFC because she preferred their selection and their prices. This is how competition should work, according to the Federal Trade Commission, which filed the lawsuit. Douglas Ross teaches antitrust law at the University of Washington.
DOUGLAS ROSS: The Federal Trade Commission's basic argument here is the consumer argument that combining Kroger stores with Albertsons stores will leave consumers with fewer choices. There'll be less competition. Prices will go up. Quality, variety and innovation will go down.
DE LUNA: Ross says the companies anticipated the FTC would make that argument, so they tried to address it by selling over 500 of their stores to a third party, C&S Wholesale Grocers, which currently operates 23 stores. But the FTC says those fixes aren't enough and points out that C&S, the buyer, has limited retail experience.
ROSS: They say C&S may take these stores over, and maybe even in good faith, but they won't be able to compete with the same aggressiveness that the existing Safeway or QFC stores compete.
DE LUNA: Together, Kroger and Albertsons have about 5,000 stores across 48 states. The companies say combining forces will add to their buying power and increase their ability to bring down prices. They also say they have confidence in C&S. But the FTC's concern isn't just about consumers. It's also about workers.
KEVIN FLYNN: They, essentially, will be holding all the cards at the table.
DE LUNA: Kevin Flynn has been a meat cutter at Albertsons in Marysville, Wash., for almost two decades. He's been a bargaining team member for the workers union. Kroger is unionized, too. Flynn says having two competing companies provides leverage during contract negotiations. He also says that workers are worried they'll lose their jobs, or their colleagues will, and become competition for fewer jobs.
FLYNN: There's going to be a flood of these other employees coming in that may have more seniority, so are they going to be able to bump me out of my hours?
DE LUNA: Kroger and Albertsons say merging will not only help them compete against nonunion rivals, like Walmart and Costco. It would also benefit the long-term future of union jobs. This trial is expected to wrap up soon. No matter the ruling, it won't settle the matter for good. Kroger and Albertsons face more legal challenges in Washington state and Colorado. For NPR News, I'm Ruby de Luna in Seattle.
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