Mergers, store revenue, and jobs: Evidence from the food retail industry

Debashrita Mohapatra, Rigoberto Lopez and Sandro Steinbach

No 360970, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: This article investigates the effects of a merger between food retailers on grocery store revenue and employment. One major concern with mergers is the potential increase in market power for the merging firms, which could lead to higher prices. However, merging firms and competitors might also reorganize their store locations and workforce to save costs and avoid cannibalization. We assess the implications of such mergers and look into store revenue and employment based on market dynamics. By analyzing a hypothetical merger between Albertsons and Kroger, our findings shed light on how store revenue and employment would have changed if the merger had been approved. Potential reductions in the store network lead to changes in revenue and, further, substantial job cuts resulting from the merger.

Keywords: Industrial Organization; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 28
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360970

DOI: 10.22004/ag.econ.360970

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