Justin Hwang, GOP Chair: Inflation crisis = we need Kroger-Alebertson merger

By Justin Hwang, Chairman, Oregon GOP
Entrepreneur and Business Leader

As the cost of living continues to rise in Oregon, it’s more important than ever that we take a hard look at the potential impact of the Kroger-Albertsons merger on affordability—especially when it comes to grocery prices and availability. Unfortunately, the Oregon Health Authority’s (OHA) decision to interfere in this merger could worsen an already tough situation for families across the state.

Albertsons has been clear about the challenges they are facing: the company is struggling with major structural issues that prevent it from competing on price with larger competitors. If this merger doesn’t go through, Albertsons may be forced to close stores, lay off workers, or pull out of entire markets. That’s not just bad news for the thousands of employees who could lose their jobs—it’s also a serious blow to Oregonians who are already struggling to afford basic necessities like food.

Right now, prices at Albertsons stores are 10-12% higher than at Kroger stores. But Kroger has committed to investing $1 billion to lower prices across Albertsons locations, which would help ease the burden on consumers and make groceries more affordable for everyone. Without this merger, those higher prices are likely to stay—if the stores stay open at all.

Instead of letting this much-needed deal move forward, OHA is stepping in with misguided objections, claiming to act in the interest of Oregonians while ignoring the very real consequences if this merger fails. At a time when inflation is already putting a strain on families, we can’t afford to lose more grocery options or face even higher prices. If Albertsons is forced to close stores, that means fewer places to shop, less competition, and ultimately higher costs for consumers.

What’s even more concerning is that OHA is focusing on this issue when there are far more pressing challenges that demand their attention—like the opioid crisis, which claimed over 1,000 lives in Oregon in 2023. Instead of working to solve a health emergency, OHA is meddling in a private-sector merger, risking the future of our grocery stores and, by extension, the affordability and availability of food in our communities.

This merger represents our best chance to protect consumers from even steeper grocery costs. With Kroger’s commitment to lowering prices, Oregonians stand to benefit from more affordable groceries at a time when every dollar counts. But if OHA’s interference leads to the deal falling apart, the alternative is grim: store closures, layoffs, and fewer options for Oregon families.

We need to demand that our government agencies focus on what really matters—helping to lower the cost of living and ensuring basic necessities like groceries remain accessible. OHA’s involvement in this merger is unnecessary and harmful. It’s time for them to get back to their core mission and let the free market do its job in helping make life more affordable for Oregonians.