Kroger to merge with Albertsons?

[Bagels]

Hawaii always had a higher price scale though on most hardlines/consumable items. Clothing prices with prices tagged on the item are historically the same. They may have run a few items at those lower same as mainland prices to support ads, etc., but the general price structure they have always used in Hawaii and Alaska is different than the mainland.

To clarify, the price of perishables has always varied by market, but the price of non-perishables generally did not vary by market. If a can of Great Value vegetables was 39c in Arkansas, it was 39c in Hawaii. If a bottle of laundry detergent was $9.99 in Indiana, it was $9.99 in Hawaii. We traveled to Hawaii frequently in the 2000s and our budget was tight. I heavily relied on mainland pricing to help budget our trips. We bought light supplemental meals (instant oatmeal, beef stew, etc.), "healthy snacks" (apple sauce), meal sides (potato chips), soda, etc. and the prices in HI were typically the same as mainland.

To continue this off-topic Walmart bakery talk, I noticed my local WM dropped the price of their mini pies back down to 50 cents, what they used to be pre-inflation. I guess sales plumetted when they raised it to 74 cents.

Still 74 cents here. I'm not a picky eater, but those mini pies are terrible.

[storewanderer]

Hawaii always had a higher price scale though on most hardlines/consumable items. Clothing prices with prices tagged on the item are historically the same. They may have run a few items at those lower same as mainland prices to support ads, etc., but the general price structure they have always used in Hawaii and Alaska is different than the mainland.

To clarify, the price of perishables has always varied by market, but the price of non-perishables generally did not vary by market. If a can of Great Value vegetables was 39c in Arkansas, it was 39c in Hawaii. If a bottle of laundry detergent was $9.99 in Indiana, it was $9.99 in Hawaii. We traveled to Hawaii frequently in the 2000s and our budget was tight. I heavily relied on mainland pricing to help budget our trips. We bought light supplemental meals (instant oatmeal, beef stew, etc.), "healthy snacks" (apple sauce), meal sides (potato chips), soda, etc. and the prices in HI were typically the same as mainland.

It has not been that way for many years on these items and it must have been when they had only a store or two running and were trying to get a reputation for low prices or something. They have been on a higher price scale in Hawaii, just like other retailers there selling consumables, for many years. Same in Alaska.

I would call pricing in Hawaii the same as Mainland as rather predatory for smaller competitors but I suppose it was great for the customer during those years, at least as long as the smaller competitors could stay in business...

[HCal]

To clarify, the price of perishables has always varied by market, but the price of non-perishables generally did not vary by market. If a can of Great Value vegetables was 39c in Arkansas, it was 39c in Hawaii. If a bottle of laundry detergent was $9.99 in Indiana, it was $9.99 in Hawaii. We traveled to Hawaii frequently in the 2000s and our budget was tight. I heavily relied on mainland pricing to help budget our trips. We bought light supplemental meals (instant oatmeal, beef stew, etc.), "healthy snacks" (apple sauce), meal sides (potato chips), soda, etc. and the prices in HI were typically the same as mainland.

What time period are you referring to?

I regularly saw variation on pricing even within a local market, but this was with different types of stores (supercenter vs. neighborhood market) so perhaps that was a factor.

[storewanderer]

To clarify, the price of perishables has always varied by market, but the price of non-perishables generally did not vary by market. If a can of Great Value vegetables was 39c in Arkansas, it was 39c in Hawaii. If a bottle of laundry detergent was $9.99 in Indiana, it was $9.99 in Hawaii. We traveled to Hawaii frequently in the 2000s and our budget was tight. I heavily relied on mainland pricing to help budget our trips. We bought light supplemental meals (instant oatmeal, beef stew, etc.), "healthy snacks" (apple sauce), meal sides (potato chips), soda, etc. and the prices in HI were typically the same as mainland.

What time period are you referring to?

I regularly saw variation on pricing even within a local market, but this was with different types of stores (supercenter vs. neighborhood market) so perhaps that was a factor.

Until maybe 2012 or so, Wal Mart's pricing throughout the Supercenters varied significantly by store. They price shopped WinCo or whoever and every store had different/random grocery pricing on many items. There was a corporate price feed of course (that is the one that varied between formats and in some cases regions) but someone in store management was able to basically change prices to match local competition as the deemed necessary.

The rural/no competition Wal Mart Supercenters always had noticeably higher grocer pricing than those in suburbs with actual competition. However, that pricing was still significantly (30-40%) lower than any Safeway affiliated chain would price at the time, and was also a little lower than a typical Kroger affiliated chain (but Kroger was beating them on many sale items).

[Bagels]

What time period are you referring to?

I regularly saw variation on pricing even within a local market, but this was with different types of stores (supercenter vs. neighborhood market) so perhaps that was a factor.

2000s. Their pricing was definitely standard then. Even into the 2010s they used a single national ad that would exclude pricing for those items whose pricing varied by market.

[retailfanmitchell019]

Well, I fear this merger is actually going to be completed...
https://www.winsightgrocerybusiness.com ... sed-nicely

[babs]

Well, I fear this merger is actually going to be completed...
https://www.winsightgrocerybusiness.com ... sed-nicely

I'd wait for the FTC to chime in before making such a statement. I continue to believe the FTC will block it or require much more substantial divestitures.

[rwsandiego]

Well, I fear this merger is actually going to be completed...
https://www.winsightgrocerybusiness.com ... sed-nicely

Of course they are saying "it is going nicely." They certainly wouldn't say "Oh, my God this is a s***show. What the f*** were we thinking? Put us out of our misery right now." during an earnings call!

I'd wait for the FTC to chime in before making such a statement. I continue to believe the FTC will block it or require much more substantial divestitures.

Exactly.

If Kroger and Albertsons are a few months away from certifying compliance with the FTC's latest request for information and expect to deliver by calendar Q3/early fall, the FTC will need time to review the information. And they will ask for more information. And Kroger/Albertsons will need a few months, and... the FTC will need...

As far expecting the transaction closing in early 2024, it is possible. How probable is it? Hmmmm...

[storewanderer]

Well, I fear this merger is actually going to be completed...
https://www.winsightgrocerybusiness.com ... sed-nicely

Of course they are saying "it is going nicely." They certainly wouldn't say "Oh, my God this is a s***show. What the f*** were we thinking? Put us out of our misery right now." during an earnings call!

I'd wait for the FTC to chime in before making such a statement. I continue to believe the FTC will block it or require much more substantial divestitures.

Exactly.

If Kroger and Albertsons are a few months away from certifying compliance with the FTC's latest request for information and expect to deliver by calendar Q3/early fall, the FTC will need time to review the information. And they will ask for more information. And Kroger/Albertsons will need a few months, and... the FTC will need...

As far expecting the transaction closing in early 2024, it is possible. How probable is it? Hmmmm...

I don't really see any new information shared last week. Vague things like "on track" and "expected early 2024 completion" have been being said for months now.

This language about "integration planning" is somewhat interesting. I wonder what that is all about. I hope the Smiths people are making a good case to keep Smiths in all of its markets and not surrender any portions of Smiths to any Albertsons divisions (Reno, WY, MT are of concern on that front).

I am looking forward to Safeway's terrible pricing being addressed by Kroger. Perhaps they can do a close to this stupid "sincerely" ad campaign.

-We ripped you off for years but now Kroger is taking the pricing over and fixing it.

One final sincerely,
Safeway


I don't know what happened to the states that were opposing this merger, it seems like silence out of them. What happened to that WA AG, did he only care about the special dividend for Albertsons shareholders? And CA? AZ? CO? What happened? Quite a disappointment.

[storewanderer]

To continue this off-topic Walmart bakery talk, I noticed my local WM dropped the price of their mini pies back down to 50 cents, what they used to be pre-inflation. I guess sales plumetted when they raised it to 74 cents.

Still 74 cents here. I'm not a picky eater, but those mini pies are terrible.

Saw a pile of those mini pies at Raleys today. $1.99 each.

I wonder if they are selling any.

Picked up some broccoli crowns at Raleys, they had a ton, .50/lb in store markdown I guess. Receipt says I saved 82% on my transaction. I guess broccoli has exploded in price at these CA grocers as I saw Safeway wants 2.99/lb. Pretty sure it is well below $2/lb at WinCo or Smiths.