An Arizona Republican senator said this week that Democratic Governor Katie Hobbs and Attorney General Kris Mayes should stay out of a proposed merger of the state’s two largest grocery chains as they “know very little” about the grocery industry.
Hobbs said on Wednesday that the proposed merger of Kroger Co., the parent company of Smith’s and Fry’s Foods, and Albertsons Companies, which not only runs stores under its name but also acquired Safeway and all of the stores that the company owned in 2015, may have some negative effects on Arizona.
According to Hobbs, combined, these are one of the largest employers in the state, and she is concerned about potential job losses and increases in costs with the merger.
“We’re concerned about potential loss of jobs and increasing prices, especially in rural areas that already have limited options for grocery stores,” Hobbs said.
Hobbs did not indicate what she would prefer if she decided the merger was not in the state’s best interests.
Hobbs’ remarks come as Mayes is looking at how the proposed merger will affect customers and the 35,000 employees at both chains.
State Senator T.J. Shope (R-Florance) said Arizona’s Democratic leaders should stay out of the proposed merger.
“It’s very telling to me when politicians enter the fray into areas they know very little about. The grocery industry changed an awful lot in the 70 years my family was in it and people’s shopping habits have changed tremendously. While this deal may have concerned me decades ago, it doesn’t concern me at all in 2023,” Shope said.
Shope rebutted against Hobbs’ concerns, saying that the Kroger Co. and Albertson merger will strengthen the traditional grocer when the market is increasingly competitive with new players.
“Walmart, Amazon, Target, dollar stores, pharmacies, and other non-traditional grocers are now big players in this arena. This move by Kroger and Albertsons strengthens the traditional grocer at a time when the market is increasingly competitive with new players. This merger strengthens the position for workers and the consumers by ensuring these current competitors are able to compete against the new kids on the block, so to speak,” Shope said.
Shope implored Hobbs to look to the future and warned her that if she says no to this merger, it will only strengthen the non-traditional grocers in Arizona.
“It’s time to jump into the Time Machine and join us in 2023. Saying no to this merger only strengthens Amazon and Walmart,” Shope said.
State Representative Justin Wilmeth (R-Phoenix) agreed with Shope, saying that rather than going after traditional groceries, Democratic leaders need to focus on the issues plaguing Arizona families.
“With all the issues facing families, from inflation to the opioid crisis to an unprecedented strain on border communities, our Attorney General wants to go after our local grocery stores. Sad,” Wilmeth said.
The Arizona Sun Times reached out to Hobbs, Mayes, Shope, and Wilmeth for additional comment but did not receive a reply before press time.
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Hannah Poling is a lead reporter at The Ohio Star, The Star News Network, and The Arizona Sun Times. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
Photo “T.J. Shope” by Gage Skidmore. CC BY-SA 3.0. Background Photo “Kroger Store” by Ambrosia LaFluer. CC BY 2.0.
