By Deborah Bloom and Jody Godoy
PORTLAND, Ore. (Reuters) – Kroger CEO Rodney McMullen blamed rising grocery prices on increased costs for retailers as he defended the grocery chain’s proposed $25 billion merger with rival Albertsons in a trial on Wednesday.
In court testimony in Portland, Oregon, McMullen cited rising supplier costs, fuel prices and credit card fees when asked by the company’s attorney why the prices had increased.
The U.S. Federal Trade Commission and several states have filed a lawsuit in federal court to block the merger, seeking to show that the deal would raise prices and reduce the bargaining power of unionized store workers by ending the fierce rivalry between Kroger and Albertsons.
Soaring food prices, which have become a hot political issue in the US presidential race, increased 25% between 2019 and 2023, faster than other consumer goods and services, according to statistics from the US Department of Agriculture.
“Absolutely not,” McMullen said when asked if Kroger would raise prices after the merger. “We think over time value will become more and more important and you won’t be able to price your items above market.”
Kroger has argued that it needs the increased scale from the merger to compete with Walmart, the largest U.S. retailer, while Albertsons has said that if the deal falls through it may have to consider layoffs and store closures.
(Reporting by Deborah Bloom in Portland; Writing by Jody Godoy in New York; Editing by Richard Chang)
