The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
The proposed Kroger-Albertsons merger has been the star of grocery M&A for the last two years, and now the industry seems poised for more combinations in the years ahead.
While mergers and acquisitions slowed in recent years due to high interest rates, increased regulation and lofty company valuations, Wall Street dealmakers and corporate leaders told CNBC they anticipate a flurry of transactions once President-elect Donald Trump returns to the White House.
Trump is expected to replace FTC Chair Lina Khan, who has led the Biden administration’s aggressive antitrust stance and championed its drive to block the Kroger-Albertsons deal. In addition, Trump’s administration will likely do away with merger guidelines that Khan spearheaded and the Biden administration finalized in October, sister site Legal Dive noted.
An environment friendlier to M&A activity could push more grocers to combine. Several regional chains, including Bashas’ and Raley’s, have merged in recent years and industry experts have credited the pending Kroger-Albertsons deal as motivation for smaller grocers to consider joining forces to gain scale.
While the fate of the Kroger-Albertsons merger is awaiting judges’ decisions in federal and state courtrooms, the two grocery giants could also potentially tap into a regulatory environment with lighter merger oversight. If their deal is blocked, Albertsons might explore a sale to another large grocer, while Kroger, in its quest to bulk up against the likes of Walmart and Costco, could look to buy another chain.
In case you missed it
Lawmakers say grocers might have overcharged shoppers
A group of federal lawmakers has asked the Biden administration to look into whether Albertsons or other supermarket chains have caused shoppers across the country to overpay for groceries by making misleading claims about food sold by weight.
In a Nov. 3 letter to the heads of the Federal Trade Commission and the USDA, Sen. Elizabeth Warren, Rep. Adam Schiff and eight other Congress members noted that Albertsons recently settled claims that it overcharged shoppers in California by placing inaccurate weights on product labels and urged the agencies to determine whether grocers have “engaged in similar predatory practices nationwide.” Albertsons has taken steps to prevent the pricing issues that occurred in California from happening again, NBC News reported.
South Dakota grocery tax stays in place
Voters in the state on Tuesday overwhelmingly defeated a measure that would have repealed its tax on groceries. The measure would have changed South Dakota law to prevent the state from taxing “the sale of anything sold for human consumption, except alcoholic beverages and prepared food,” according to the Sioux Falls Argus Leader. It garnered support from only 31% of voters, the South Dakota Secretary of State’s office reported.
New H-E-B store will be especially car-friendly
The grocer plans to build a new store in the Fort Worth, Texas-area, that will feature a car wash, the Fort Worth Star-Telegram reported. Construction of the 126,000-square-foot supermarket, slated to open in 2026, is due to begin in late December, according to the newspaper. The store will also include a barbecue restaurant and a gas station, the Star-Telegram reported.
Impulse find
Kroger offers Thanksgiving by the slice
Thanksgiving might be all about tradition, but as the ordinarily cooking-heavy holiday steams into view, Kroger has a rather unconventional option for shoppers looking to keep things simple.
The grocer is selling a “limited edition” frozen pizza topped with standard Turkey Day fare — a package that Kroger says will let people “get a classic holiday dinner, without spending long hours in the kitchen.” In addition to roasted turkey, the DiGiorno pizza includes crispy onions, dried cranberries, green beans and even gravy — a concoction one initially skeptical Kroger shopper called “a game changer” in a comment on the retailer’s website.
The pizza, which DiGiorno originally unveiled in 2023, will be available through Nov. 28, Frozen Foods Biz reported.
For dessert, diners can head to Baskin-Robbins for another Thanksgiving special: Turkey Day Fixin’s ice cream. The sweet treat “encapsulates all the most popular Thanksgiving sides in one sweet scoop,” according to the ice cream maker. The flavor, which mixes sweet potato and autumn spice ice creams with honey cornbread pieces and cranberry sauce, will be in Baskin-Robbins stores throughout November.
