Kroger, America’s second-biggest grocer, goes shopping

boring business. Peddling bread-and-butter products (literally) at wafer-thin margins hardly sets pulses racing. Unless, that is, you are an American politician. On October 18th Amy Klobuchar and Mike Lee, two senators, called a hearing to discuss the proposed acquisition by Kroger, America’s second-biggest grocer by revenues, of Albertsons, the fourth-largest. The top Democrat and Republican, respectively, on the Senate antitrust subcommittee also sent a letter urging the Federal Trade Commission () to size up the $25bn deal, which they say “raises considerable antitrust concerns”. Really? The American grocery market features a few national chains competing fiercely on price with regional rivals, fast-growing dollar stores and, increasingly, Amazon’s e-emporium. Together Kroger and Albertsons would have a market share of 19%—not exactly the stuff of monopoly and still less than Walmart, the supermarket behemoth, with 25% (or 30% if you add Sam’s Club, Walmart’s Costco-like membership-only big-box chain). The industry’s operating margins of 3-4% hardly scream robber barons.