Prescott, the hometown of Arizona Attorney General Chris Mays, has been the subject of a potential merger between Albertsons and Kroger, the parent company of two of the state’s largest grocery chains, Smith’s and Fries Food & Drug Stores. It was the newest place to host listening sessions. A company that operates supermarkets under the Albertsons and Safeway brands.
Mayes is investigating whether the merger violates state antitrust laws. She is just one of the few Western attorneys general considering the deal, she said.
Wednesday’s meeting was attended by a handful of lawmakers and residents from surrounding towns such as Prescott, Prescott Valley, Dewey, Wilhoit and Chino Valley. Nearly all expressed concern that the merger would drastically reduce competition and prompt closures, saying the impact would be far-reaching.
Together, the two companies employ approximately 35,000 Arizonans, making them two of the top six employers in the state.
Fresh in the minds of many in central Arizona, in 2014, Albertsons sold 10 of its Arizona grocery stores to Hagen, a Pacific Northwest grocery chain, including three in northern Arizona. That’s it. Shortly after cutting the ribbon, stores began to close and employees began to lose their jobs, according to former employees.
Mary Mallory, now the Yavapai County Supervisor for District 5, recalled that her long career as store operations manager ended abruptly because of the deal. Mallory himself was tasked with laying off hundreds of employees during this time. She said it was by the grace of God that she and her husband survived.
“I was the last person to pay my salary at that store,” she said.
“They said we would all be fine,” Mallory said.
Her former Albertsons is now a church, with believers lining up in what was once the produce section. He urged transparency.
“We deserved the opportunity to take care of our family,” she said.
Residents have called for more grocery stores for years
Echoing similar sentiments shared in May’s previous listening sessions at Kingman, the resident describes growing lines at the grocery store as the shelves are emptied. Many of these areas, including Chino Valley, have sought out another grocery store over the years, but are now in danger of losing their existing limited number of stores due to possible mergers. I have.
One resident presented Mays with a startling figure. In the Prescott neighborhood of about 59,000 people, he has only three full-service supermarkets. Compare this to Flagstaff, where he has seven full-service grocery stores for just over 77,000 residents.
Chino Valley town manager Cindy Blackmore expressed concern about the future of Safeway, the only one in her town, if there was a merger. It’s Mile’s only full-service grocery store that also serves surrounding areas such as Forks.
Aldi:Discount grocery store to open 10th store in Metro Phoenix.what to expect
The economic imperative of small towns
Many rural towns, including both the Chino and Prescott Valleys, utilize sales taxes in lieu of property taxes to build their General Fund. Blackmore warned that if the only grocery store in town were to close, it would gut the current budget for what is often the largest retailer in these areas.
“If something happened and that store closed, our general funding would be devastated,” Blackmore said. “That’s our town’s biggest source of income.”
In addition, mergers can have significant effects on real estate. These small towns now have many competing grocery stores relatively close to each other. Residents worried that a merger of the two companies would further limit their options by removing the incentive to continue operating multiple stores in a small neighborhood.
These grocery chains are also often anchor tenants in strip malls and shopping centers that support myriad other businesses. If they were to close, it would have a major impact on small businesses such as nail salons and coffee shops that rely on grocery store traffic for their many customers.
Aside from the more obvious issues surrounding employment and food security, the potential loss of these grocery stores also means the loss of an important community touchstone, they said.
Liz Harris:Watch key moments in the debate to oust the Arizona Congressman
Brenda Dickinson, Prescott Valley Town Councilor, explained the many ways local grocers contribute to their communities, including their annual Thanksgiving turkey drive and car shows in parking lots. They also provide significant donations to local food banks, she said.
“Both of these facilities have greatly supported our community, but they will be a huge loss in many ways,” Dickinson said.
“We wanted to have another grocery store in the area, so when we heard this was happening, we started panicking,” she said.
Merger details remain unclear
The two companies have provided few details about the actual logistics of the deal, but Mayes said they intend to complete the merger early next year. As such, Mays’ office will likely conduct an investigation through the summer and reach a decision on whether to block the transaction by the end of the year.
In particular, the Western Producers Association formally opposes the merger, citing concerns that it will limit where producers can sell their goods at competitive prices.
Residents of the state’s urban areas shared similar concerns with those living in rural areas.
Salt River Tubing:Owner gives keys to local limousine business owner
Mays held another session Tuesday night at the Carpenters’ Union Hall in Southwest Highlands in Phoenix, bringing together a handful of workers and their union representatives. For about an hour, Mays asked questions and listened to attendees voice similar concerns.
The attorney general’s office has already held similar hearing sessions elsewhere in the state, including Kingman, Tucson and Yuma, and plans to hold several more in the coming months. and the surrounding area.
Contact reporter Lacey Latch in Northern Arizona. LLatch@gannett.com or on social media @laceylatch. Covers Northern Arizona azcentral.com In the Republic of Arizona, it is funded by the nonprofit Report for America and a grant from the Vitalyst Health Foundation Associated with the Republic of Arizona.
