Submitted by Deryl McCarty, South Hill.
I am somewhat befuddled by the legal antics of the state’s chief legal officer, the Attorney General, in suing to stop a merger between Kroger and Albertson’s grocery stores.
First, because a lawsuit takes time and resources (read: our tax money) away from defending us against the real clear and present danger in Washington: the fast-rising murder (up 96%), rape, car theft, gang retail theft (highest in the nation), and fentanyl and other hard drug dealing crime and death rates. The Attorney General should be doing his job: enforcing and toughening Washington’s criminal laws.
Second, because suing to stop the Kroger-Albertson’s merger is specifically not his job. By the Constitution the job of regulating interstate commerce – Kroger and Albertson’s are both in every state of the union – is a Congressional responsibility that they execute, in this case, through the Federal Trade Commission (FTC). The FTC is currently reviewing the merger with a decision due in the next few months. Thus, the FTC is doing its job, so that the Attorney General can do his job: enforcing and toughening Washington’s criminal laws.
Third, the lawsuit is advancing an economic argument that the Kroger-Albertson’s merger is anti-competitive hence will raise food prices. It is a difficult argument to make since the merger will create a more competitive and larger entity that will directly compete with the big boys of the grocery arena: the wholesale-discount big boxes of Costco, Walmart, and Amazon who are non-unionized and remain 42-44% of the grocery market. The merged, unionized Kroger-Albertson’s, which stays at 13% of the grocery market, closes no stores and lays off no front-line workers but are absolutely convinced they can compete not just with lower buy-in-bigger-bulk prices but very high-quality front of the store service. In essence, the merger ensures competition and higher value/lower prices for customers. Thus Kroger-Albertson’s management and workforce are doing their jobs to make themselves more competitive so that the Attorney General can do his job: enforcing and toughening Washington’s criminal laws.
I am still befuddled. If everyone else is doing their jobs so that the Attorney General can do the enforcing and toughening Washington’s criminal laws job, why hasn’t the crime rate dropped?
Mr. McCarty-
Well written and informative submission. I agree, with the currently crime rates the AG has more important issues at hand which he should be focused.
I completely agree that the AG spends too many resources with lawsuits, but I think it is a disservice to say his role is to enforce and strengthen criminal laws. He cannot toughen laws. That is the job of our elected legislature. The AG is responsible for criminal prosecutions that get referred from county prosecutors, to represent the state as an entity and primarily to serve as legal advisor to the Governor, state legislature and state agencies. I honestly believe he is doing these high profile things lately to keep his name in the news pending the upcoming election. Sadly, people vote by name recognition more than they vote by qualifications.
Deryl, your arguments seem a bit forced and contrived, vested interest perhaps or just political venting? Profits in the retail grocery business are driven by a firm’s market power and dominance within geographic areas logistically convenient for shoppers. Eliminating competition clearly gives the remaining firm more freedom to increase prices and their margin. Many parts of the state don’t have the concentrated retail presence of a South Hill. Simple economics really.
I live in Lakewood and have shopped at Safeway for decades. Several years ago, I happened to shop at Albertson and the difference in prices were very noticeable, Albertson was much cheaper. After the merger between Safeway and Albertson the prices at Albertson went up to match Safeways. I now shop at Fred Meyer where the prices are considerably less than Safeway and Albertson. I guarantee you that if this merger goes through, the prices at FM will go up to match the other two. It is very expensive to go through a buy-out at this level, the money has to come from somewhere.
Thank you Ron, your anecdote is actual data to make a point. I, too, favor FM, one of many chains under Kroger. Kroger and Albertsons are both enormous enough to individually compete with the Walmarts of the world.
Our AG is a controligarch who wants to be Governor.
He has his own interpretation of the Constitution and rights of the citizen.
Under his “justice”, rights are spawned and rights are destroyed.
He has little use for a Legislature other than a vehicle for which to steer his ambitions.
Imagine an Attorney General for the citizens, rather than a tax-funded legal hammer for State Government.
There’s a reason Washington is in such a confused state these days.
After the merger less stores will be open in the area. You will have to drive further to a grocery store. You will be at the mercy of one company owning most of the grocery stores in the area. They will base decisions on profit & close many stores. Only the corporation knows which will be in our area. We may no longer have Albertson or Fred Meyer or Safeway. Only shareholder’s will benefit. Food prices will increase. Consumers will not benefit.