BY NICK EVANS-JULY 6, 2026 3:55 AM
CINCINNATI — The Ohio-based grocery chain Kroger announced plans Wednesday to purchase one of its competitors, Giant Eagle, for $1.65 billion. The Pennsylvania-based retailer has more than 200 locations stretching from Maryland to Indiana. The deal is expected to close next year and still needs federal approval to go forward.
In a press release Kroger CEO Greg Foran praised Giant Eagle as a “high-quality regional grocer” and touted its “fresh products, pharmacy, private label and customer loyalty.”
“We evaluated the opportunity carefully, and the strategic fit is clear,” he went on. “Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.”
Despite emphasizing adjacent markets, much of Giant Eagle’s territory overlaps with Kroger — already the largest traditional grocery chain in the country. With previously competitive stores operating under the same shingle, some Giant Eagle locations are certain to close or get sold off. The press release notes the companies “expect to make limited Giant Eagle store divestitures.”
In 2024, federal regulators shot down a similar deal in which Kroger attempted to purchase Albertsons. But with a very different administration in the White House, it’s possible the Federal Trade Commission will view the latest deal differently.
The deal’s implications
Giant Eagle CEO Bill Artman offered a rose-tinted view of the agreement, calling it “an exciting next chapter for our Team Members, customers, vendors and community partners.”
“Together with Kroger,” he added, “we will be well-positioned to advance our strategy and deliver better quality and service, better everyday value, and a better shopping experience for our customers, while providing greater growth opportunities for our dedicated Team Members.”
Rob Moore, a public policy researcher and principal of Scioto Analysis, said there’s some credence for a positive outlook.
“Our instinct is to be worried about consolidations because of reductions in competition in the market, but the deal is not necessarily bad for consumers,” he said. “Larger grocery stores can sometimes lead to more efficiencies in purchasing, logistics, and technology deployment.”
But Moore stressed, “these efficiencies only matter to consumers if they lead to lower prices, better service, or better access to food.”
American Economic Liberties Project Director of Policy and Advocacy Morgan Harper warned the deal could be a lose, lose, lose.
“What we usually see with these large grocery store mergers is that they have detrimental impacts for both workers, and consumers, and other small businesses, suppliers, that try to provide products to a Kroger.”
If the deal means some stores are redundant, Harper said, it’s safe to assume some workers will get pink slips. With less competition, she added, the grocery giant gains even greater pricing power. That could mean higher prices in the aisle, as well as a harder bargain for the companies making the products that end up there.
“A combined Kroger could become the only game in town,” she said. “Especially right now with so many people struggling to keep up with how costs are increasing across the board, this is the type of transaction that could exacerbate that in the form of higher food costs.”
The most recent Consumer Price Index report showed the cost of groceries climbed 2.7% over the past year.
Harper doesn’t expect the Trump administration FTC to pursue the merger as aggressively as it did during President Biden’s tenure, but that’s not the only enforcement mechanism available. State attorneys general have the authority to investigate, and if they determine the deal is anti-competitive, they could sue to block it.
And Harper noted there’s some positive, recent precedent for state AGs going it alone.
“That’s what we’re seeing with Live Nation-TicketMaster,” she said, “the feds settled and the state AGs continued that case.”
Although the Live Nation case is far from over, in April, a jury determined the company was acting as a monopoly.
Follow Ohio Capital Journal Reporter Nick Evans on X or on Bluesky.