With $24.6 billion merger looming, we’re looking at the grocery business – Press Telegram
On Oct. 14, between Kroger Co . and Albertsons in a $24.6 billion deal proposed that would make a 5,000 grocery store a giant. Today we look at the national landscape of the grocery business.
The deal will create a stronger competitor for Walmart Inc. and other competitors, so it is certain to face tough antitrust scrutiny as US regulators under President Joe Biden become more skeptical of large mergers.
The massive merger is one of the biggest deals in the retail industry in recent years, such as Amazon.com Inc.’s purchase. Whole Foods Market in 2017 for $13.7 billion.
The merger will give Kroger access to the Northeast, filling out its national footprint. The Cincinnati-based parent of Ralph and Fred Meyer is the No. 2 grocer in the U.S. with a 9.9% market share, compared to Walmart’s nearly 21%, according to Numerator. Albertsons ranks fourth with 5.7%, and its portfolio includes the Acme, Jewel-Osco, Safeway, Shaw’s and Tom Thumb chains, as well as namesake stores.
By the numbers
• $811.5 billion: The size of the grocery market in the United States in 2022
• $6.7 billion: How much has the US grocery store market grown since 2021.
• $129.72 billion: Online grocery shopping is projected to reach 2023.
• 1.4%: How much did the US grocery store market grow each year from 2015 to 2020.
Product networks in the United States
Walmart has nearly 5,000 stores across the U.S. Albertsons, the blue one, has more than 2,300 stores. The darker green clusters in Detroit, Chicago and Cincinnati represent Kroger.
Click on the map below to see an interactive map of America’s grocery stores in 2020. businessofbusiness.com.
In accordance with Foodindustry.comthere are 26,149 brick-and-mortar supermarkets in the U.S. There are an additional 4,412 “supercenters” (Walmart) and another 1,370 club stores (such as Costco).
Note: Excludes some specialty chains, including ALDI, LIDL, Trader Joe’s, Sprouts, Whole Foods and Wegman’s.
Sources: Thinknum, businessofbusiness.com, US Department of Food and Agriculture, Bloomberg, ibisworld.com, Associated Press
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