Ryan English, MBA, CFA, CPA, CFP®, recently spoke with Steve Watkins of the Cincinnati Business Courier about how the potential merger between Kroger Co. and Albertsons Cos. Below is an excerpt from the article:
The deal could work well from an operations standpoint, Ryan English, investment manager and shareholder at Kenwood-based investment advisory firm Foster & Motley, told me.
“Achieving more scale in a time when prices and costs are going up would certainly be beneficial for Kroger,” English said. “As grocery moves more towards delivery, the physical presence of conveniently located stores might become less important over time. The efficiency and scale of grocery delivery and end prices to the consumer will be bigger factors.”
A merger would provide Kroger-Albertsons with more pricing power. But English cautions even a merged company would still be competing with Amazon and Walmart nationally when it comes to scale and pricing power.
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