Kroger's mountain town pricing strategy under scrutiny in Colorado merger trial

[Passages]

A Kroger executive testified on a City Market "mountain no-comp zone” where the grocer raised prices to cover its rising costs.

Bernadette Berdychowski

Oct 1, 2024 Updated 15 hrs ago

On the second day of the trial over Colorado’s attempts to block the Kroger-Albertsons merger, the state’s legal team questioned Kroger’s executives on a pricing strategy implemented in several mountain towns across Colorado.

Kroger Senior Director of Pricing Andy Groff testified on Tuesday morning about a program called the “mountain no-comp zone” established in 2022 when inflation was surging nationwide. It was also called a “low-comp” zone.

The zone identified eight stores on the state’s Western Slope, where Kroger had less competition. It included City Market stores in Glenwood Springs, Aspen, Breckenridge, Newcastle, Granby, Carbondale, Eagle and El Jebel.

In all eight stores, Kroger raised prices under the program, Groff confirmed.
Kroger is the parent company of nearly 150 stores under the King Soopers and City Market brand within Colorado. The grocer is currently facing three lawsuits from state and federal officials in Colorado, Washington and in Oregon as it tries to merge with Safeway’s parent company Albertsons for $25 billion.

https://denvergazette.com/news/business/colorado-kroger-mountain-town-merger-trial/article_ea0852f6-8039-11ef-85a0-db817e58be3b.html

[CrispyQ]

1. Hey! Let's let one company own all the grocery stores.

My town has King Soopers, Safeway, & Sprouts so if the merger goes through, one company will own the two biggest stores in town.

[Stargazer99]

2. and you will be paying thru the nose for your food, etc-Of course they won't take advantage

of a closed off market, they said so, wait until the merger happens and oops that is exactly what will happen just how blind can people be?

[AllyCat]

3. My sister lives in a part of Virginia with a heavy tourist presence

In the summer. She said the prices at their only grocery (K-Roger of course) nearly double during that time.