Affiliate Edward Fox and Analysis Group Coauthors Use Kroger-Albertsons Ruling to Explore Drivers of Supermarket Competition in Journal of Retailing Article
March 4, 2025
In a high-profile antitrust matter, the Federal Trade Commission (FTC) filed a lawsuit to block the merger of the Kroger Corporation and Albertsons Companies, two of the largest supermarket retailers in the US. Despite the parties’ proposal to divest hundreds of stores and other assets as a remedy to restore competition potentially lost from the merger, the FTC argued that the transaction would lessen supermarket competition and harm consumers. Testifying on behalf of the FTC, Analysis Group academic affiliate Edward Fox analyzed the consequences for consumers of the proposed divestiture and opined that many of the divested stores would be unable to compete with the merged entity. A judge in the US District Court for the District of Oregon granted the preliminary injunction to block the merger and cited Professor Fox’s analysis in her determination that the proposed divestiture would be insufficient to remedy harm caused by the merger.
In an article published in the Journal of Retailing, Professor Fox and Analysis Group coauthors including Principal Laura O’Laughlin, Vice President Marcello Santana, Manager Justin LaTorraca, and Senior Analyst Joseph Bourdage draw from the witness testimony and the court’s ruling – including its detailed analysis of the parties’ divestiture plan – to identify the key drivers of supermarket competition today. The authors explore the capabilities and assets needed for supermarkets to compete effectively and describe the likely obstacles faced by the prospective divestiture buyer in the case. They discuss how competition in the supermarket industry has shifted with the growth of Walmart as a competitor, developments in how retailers use integrated technologies and shoppers use their digital devices, as well as the increased importance of private-label brands to retailers’ revenues and shoppers’ choices. Noting the degree to which technology and other brand and product factors have altered the landscape of supermarket competition, the authors suggest several areas for future academic study.
Read a summary of Analysis Group’s work on the Kroger-Albertsons merger case