Washington, D.C. – “Today, 69% of all grocery sales are controlled by four nationwide chains. Growth and consolidation once aimed at efficiency are now primarily motivated by amassing raw buyer power used to strong-arm product suppliers while undermining smaller competitors. This marketplace trend was at the core of the failed merger between Kroger and Albertsons.
Grocery consolidation stems from decades of FTC failure to enforce critical antitrust laws like the Robinson-Patman Act, which was designed to protect consumers and foster competition by preventing economic discrimination against independent grocers. Without enforcement, dominant chains abuse their power to coerce preferential pricing and terms of trade from suppliers and agriculture producers. As a result, suppliers are forced to offset these losses by charging higher prices to independent grocers —even when independents buy in similar volumes.
Main Street America has been decimated over the years, losing locally owned grocery stores, pharmacies, and hardware stores. Antitrust laws provide important guardrails to help keep markets free and open, but when enforcers fail to do their jobs, the system breaks down and our communities suffer. Now, it is time for Congress and the FTC to enforce and strengthen antitrust protections to ensure a fair marketplace for independent grocers and their customers.”
About NGA
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
