Kroger, Albertsons May Be Merging But Shoppers Get Hit By High Prices

Kroger announced Friday that it plans to buy Albertsons in a $25 billion deal that could change the US retail industry and impact how millions of customers buy their groceries, Nathaniel Meyersohn and Jordan Valinsky reported for CNN Business, but shoppers are also scrimping due to higher prices.

Photo Insert: The deal, which is expected to close in 2024, would combine two of the largest supermarket chains in the country and create one of its largest private employers.

The deal, which is expected to close in 2024, would combine two of the largest supermarket chains in the country and create one of its largest private employers. The two companies have a combined 710,000 workers, nearly 5,000 stores, and more than $200 billion in sales.

The companies say they reach 85 million households. Sens. Bernie Sanders and Elizabeth Warren oppose the buyout.

However, US consumers, who are battling decades-high inflation, are beginning to pull back on purchases amid aggressive rate hikes from the Federal Reserve.

Retail sales for September were unchanged from the previous month, after rising by a revised 0.4% in August. Economists had predicted a 0.2% monthly increase, according to estimates from Refinitiv.

The report showed that consumers pulled spent less last month on cars, furniture, electronics, building materials, sporting goods, and gas stations, Alicia Wallace also reported for CNN Business.

The typical American household spent $445 more a month in September to buy the same goods and services they purchased a year ago, according to Moody's Analytics. "Inflation is costly," said Ryan Sweet, senior director at Moody's.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic