Kroger And Albertson's Merger

While for the companies that use consolidation, it increases the scope of their sales, minimizes costs and provides a service with a high level of quality that transfers a clear differentiation to them. As the trend toward further consolidation continues, a mega-merger between Kroger and Albertsons was announced, which could have big ramifications for grocery shopping at American supermarkets (Krupnick). The deal represents nearly $25 billion, one of the largest deals in retail history. This merger would continue the trend of consolidation in the food system. Many worry that this level of consolidation coupled with the slowdown in new business is approaching dangerous levels of inequality; sectors inside and outside the food system are increasingly

A retailer's size can be both advantageous and challenging in the grocery retail industry. The scale of larger retailers allows them to negotiate better deals with suppliers, which could result in consumers saving money. The companies can also invest in efficient distribution networks and supply chains to meet the varied needs of consumers. At Aldi, almost all of the products sold are private label. By avoiding well-known brands, the supermarket can avoid going through intermediary companies and offer consumers more affordable prices. By having a selection of 900 basic products, stores have less to stock and display in the store. In return, lower rental prices translate into discounts for customers because the facilities are smaller than most other grocery

Since then, stores that offer food and beverages through digital platforms have been gaining more and more presence. This emerging sector is known as eGrocery. The benefits of eGrocery are considerable: greater customer reach, availability, cost reduction, increased profit margin and scalability. Being a staple sector, sellers do not have to worry so much about demand as about distribution. Thus, smaller businesses are looking for a way to compete in the digital world against large stores that have clearly superior logistics and operational capabilities. An example of this could Instacart, which was created in 2011, it operates in Canada and the United States. It is a grocery collection and delivery platform that offers its service through its website and mobile app. The company gives the user the possibility of making a purchase in the more than 500 participating supermarkets and establishments, which is made by a personal