Key Points

• Research suggests the Kroger-Albertsons merger could reduce competition, potentially raising prices, but Kroger argues it would lower costs to compete with giants like Walmart.
• It seems likely that many Kroger workers face poverty-level wages, with some experiencing food insecurity, though Kroger claims to have increased pay and benefits.
• The evidence leans toward Kroger settling a religious discrimination lawsuit for $180,000, with debates over uniform policies versus religious accommodations.

Overview of Controversies

Kroger, a major U.S. supermarket chain, faces several controversies that highlight tensions between corporate strategy, worker rights, and legal obligations. These include the proposed merger with Albertsons, concerns about worker pay and conditions, and a religious discrimination lawsuit. Below, we explore each issue with balanced arguments from both sides, keeping the discussion approachable for a lay audience.

Kroger-Albertsons Merger

The proposed $24.6 billion merger aims to create the largest supermarket chain, but it’s been blocked by courts in 2024 due to antitrust concerns. Critics worry it could lead to higher prices and fewer choices for consumers, while Kroger says it’s needed to compete with big retailers like Walmart and Amazon, potentially lowering costs.

Worker Pay and Conditions

Many Kroger workers report struggling with low wages, food insecurity, and homelessness, despite the company’s profits. Kroger counters that it has invested heavily in wages and benefits, including a $770 million commitment in 2023, and works with unions to improve conditions.

Religious Discrimination Lawsuit

In 2022, Kroger settled for $180,000 after firing two employees who refused to wear a uniform with a rainbow logo, citing religious beliefs. The debate centers on whether Kroger failed to accommodate religion or had a legitimate uniform policy, with Kroger denying wrongdoing but agreeing to enhance training.

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Survey Note: Detailed Analysis of Kroger’s Controversies

This section provides a comprehensive analysis of Kroger’s controversies, drawing on credible data and expert perspectives to ensure a balanced and detailed examination. The controversies—Kroger-Albertsons merger, worker pay and conditions, and the religious discrimination lawsuit—are explored with arguments from both sides, supported by sources and footnotes.

Controversy 1: The Proposed Kroger-Albertsons Merger

In October 2022, Kroger announced its intention to acquire Albertsons Companies, Inc. for $24.6 billion, aiming to create the largest supermarket chain in the U.S. with over 5,000 stores and nearly 700,000 employees. However, the Federal Trade Commission (FTC) and state regulators challenged the merger, leading to its blockage by federal and state courts in December 2024, citing anticompetitive concerns FTC Challenges Kroger’s Acquisition of Albertsons, Federal Trade Commission (2024).

Arguments Against the Merger (FTC, Labor Unions, and Consumer Advocates)

1. Reduced Competition and Higher Consumer Prices
   • Argument: The merger would significantly reduce competition in the grocery sector, leading to higher prices, lower quality products, and fewer choices for consumers. The combined entity would dominate many local markets, controlling a substantial share of grocery sales and reducing incentives to compete on price and service.
   • Supporting Evidence:
     • The FTC estimated that the merger would create a combined entity controlling 70% of the grocery market in over 150 cities alongside Walmart, based on market share data FTC Challenges Kroger’s Acquisition of Albertsons, Federal Trade Commission (2024).
     • A Kroger executive confirmed during a Colorado trial that the company raised prices in “no-comp stores” (towns without competition) while keeping prices lower in markets with Albertsons’ Safeway stores, suggesting reduced competition post-merger could lead to price hikes Kroger-Albertsons Merger Blocked by Courts, Reuters (2024).
     • The FTC argued that supermarkets offer a unique “one-stop shopping” experience, distinct from online retailers like Amazon, making the loss of competition between Kroger and Albertsons particularly harmful to consumers FTC Challenges Kroger’s Acquisition of Albertsons, Federal Trade Commission (2024).
   • Advocates’ Rationale: Opponents, including the FTC and consumer advocacy groups, assert that the merger would consolidate an already concentrated grocery industry, where four companies (Walmart, Costco, Kroger, and Albertsons) dominate. They argue that Kroger’s promise to lower prices is unenforceable and insufficient to offset the loss of head-to-head competition, which historically drives competitive pricing and innovation.
2. Inadequate Divestiture Plan and Worker Impacts
   • Argument: The FTC and labor unions contend that the divestiture plan to C&S Wholesale Grocers is flawed, as C&S lacks the retail experience and infrastructure to effectively operate the divested stores. Additionally, the merger could harm workers by reducing union bargaining power and leading to job losses or wage suppression.
   • Supporting Evidence:
     • Both the District of Oregon and Washington state courts found the divestiture plan inadequate, citing C&S’s limited retail experience and the risk that divested stores could close or be sold off, further reducing competition Kroger-Albertsons Merger Blocked by Courts, Reuters (2024).
     • The United Food and Commercial Workers (UFCW), representing about two-thirds of Kroger’s employees, opposed the merger, arguing it would diminish workers’ bargaining power and lead to layoffs, especially in overlapping markets UFCW International Union, “Kroger-Albertsons Merger Threatens Workers’ Rights,” 2023.
     • The FTC highlighted that the merger would eliminate competition for labor, potentially suppressing wages and worsening working conditions for grocery workers FTC Challenges Kroger’s Acquisition of Albertsons, Federal Trade Commission (2024).
   • Advocates’ Rationale: Critics argue that C&S’s wholesaler background does not equip it to manage a large retail operation, risking store closures and job losses. They also emphasize that the merger’s scale would give the combined entity disproportionate power over workers, undermining labor unions’ ability to negotiate fair wages and benefits.

Arguments For the Merger (Kroger and Albertsons)

1. Enhanced Competitiveness Against Retail Giants
   • Argument: Kroger argues that merging with Albertsons is essential to compete with non-traditional grocery giants like Walmart, Amazon, and Costco, which dominate the retail market with vast resources and economies of scale. The merger would allow the combined entity to optimize operations, reduce costs, and lower prices for consumers, thereby strengthening its market position against these “existential threats.”
   • Supporting Evidence:
     • Kroger’s attorney, Matthew Wolf, emphasized during the FTC trial that Walmart, Amazon, Costco, and Aldi pose significant competitive pressures, with Walmart controlling approximately 25% of the U.S. grocery market and Amazon’s grocery sales through Whole Foods and online channels continuing to grow FTC v. Kroger Co., Transcript of Trial Proceedings (2024).
     • Albertsons’ attorney, Enu Mainigi, noted that Albertsons’ prices are 10-12% higher than Kroger’s, and the merger would enable immediate price reductions at Albertsons stores, aligning them with Kroger’s lower pricing model Kroger-Albertsons Merger Blocked by Courts, Reuters (2024).
     • Kroger pledged a $1 billion investment to reduce grocery prices post-merger, doubling its initial $500 million commitment, as part of its strategy to attract more customers Kroger Co., “Kroger Commits $1 Billion to Lower Prices,” Press Release (2024).
   • Advocates’ Rationale: Kroger and Albertsons assert that the grocery industry is no longer defined by traditional supermarkets but by a broader retail landscape. Without the merger, they risk losing market share to larger competitors, which could lead to store closures and layoffs. The merger, they argue, is a proactive step to ensure long-term viability and consumer benefits.
2. Robust Divestiture Plan to Maintain Competition
   • Argument: To address antitrust concerns, Kroger and Albertsons proposed divesting 579 stores, eight distribution centers, and several private-label brands to C&S Wholesale Grocers, a well-capitalized wholesaler with retail experience. This divestiture plan, they argue, ensures that competition remains intact in affected markets, as C&S would emerge as a strong new competitor.
   • Supporting Evidence:
     • The updated divestiture plan (April 2024) increased the number of divested stores from 413 to 579 across 18 states and the District of Columbia, addressing feedback from regulators Kroger Co., “Updated Divestiture Plan,” SEC Filing (2024).
     • C&S would acquire established banners like QFC and Mariano’s, which do not directly compete with Walmart, and would be led by Susan Morris, Albertsons’ chief operating officer with nearly 40 years of grocery industry experience C&S Wholesale Grocers, “Acquisition of Kroger-Albertsons Stores,” Press Release (2024).
     • Kroger’s attorney highlighted C&S’s “staggering” resources and due diligence, arguing that the FTC’s skepticism about C&S’s ability to operate the stores is unfounded FTC v. Kroger Co., Closing Arguments (2024).
   • Advocates’ Rationale: Kroger and Albertsons contend that the divestiture plan is a comprehensive remedy that preserves competition. They argue that C&S’s expertise and resources, combined with experienced leadership, make it capable of maintaining the divested stores’ competitiveness, thus mitigating any anticompetitive effects.

Controversy 2: Worker Pay and Conditions

Kroger, as the largest supermarket chain in the U.S., employs nearly 500,000 workers across its stores. However, there have been significant concerns about worker pay and conditions, with some employees reporting poverty-level wages, food insecurity, and even homelessness. Below are the strongest arguments from both sides, supported by data from 2022-2025 reports.

Arguments Against Kroger’s Worker Pay and Conditions (Critics and Workers)

1. Low Wages and Poverty Among Workers
   • Argument: Many Kroger workers live in poverty, with wages that are insufficient to cover basic living expenses. Despite the company’s profitability, workers struggle with food insecurity, housing instability, and financial hardship.
   • Supporting Evidence:
     • A 2022 survey by the Economic Roundtable found that 78% of Kroger workers in Southern California, Colorado, and Washington State are food insecure, with 14% having experienced homelessness in the past year Hungry at the Table: A Survey of Kroger Workers, Economic Roundtable (2022).
     • The same survey revealed that 67% of workers do not earn enough to pay for basic expenses every month, and 29% are below or near the federal poverty level Hungry at the Table: A Survey of Kroger Workers, Economic Roundtable (2022).
     • Workers reported unpredictable scheduling, high workloads, and limited opportunities for full-time employment, which exacerbate financial instability, with 86% relying on Kroger as their sole source of income Business Insider, “Kroger Workers Face Hunger, Homelessness Amid Company Profits,” Article (2022).
   • Advocates’ Rationale: Critics, including labor unions like the UFCW and worker advocacy groups, argue that Kroger’s low wages and challenging working conditions are a direct result of the company’s cost-cutting measures to boost profits. They contend that while Kroger has made some wage increases, they are insufficient to address the systemic issues of poverty among its workforce.
2. Disparity Between Executive Pay and Worker Wages
   • Argument: There is a stark contrast between the compensation of Kroger’s executives and the wages of its frontline workers, highlighting inequity within the company.
   • Supporting Evidence:
     • In 2021, Kroger’s CEO, Rodney McMullen, received a $22.4 million pay package, a 6% increase from the previous year, while the company’s median employee pay fell by 8% Kroger Co., “Executive Compensation,” SEC Filing (2021).
     • During the COVID-19 pandemic, Kroger ended its $2 per hour hazard pay after just two months, despite workers facing significant health risks, while executives continued to receive high compensation Kroger Co., “COVID-19 Hazard Pay Announcement,” Press Release (2020).
   • Advocates’ Rationale: Critics argue that Kroger prioritizes shareholder value and executive compensation over fair wages for its workers. They assert that the company’s financial success should translate into better pay and benefits for frontline employees, not just for top executives, as evidenced by reports of workers relying on food banks Business Booms at Kroger-Owned Grocery Stores, but Workers Are Left Behind, The New York Times (2022).

Arguments For Kroger’s Worker Pay and Conditions (Kroger)

1. Wage Increases and Benefits Investments
   • Argument: Kroger has made significant investments in employee pay and benefits, including wage increases and additional support during the COVID-19 pandemic, reflecting its commitment to improving worker conditions.
   • Supporting Evidence:
     • In 2020, Kroger announced a $2 per hour wage increase for its workers, along with additional emergency paid leave and workplace safety measures, in collaboration with the UFCW Kroger, UFCW Announce Increased Pay, Benefits for Grocery Workers on Front Lines of Coronavirus Outbreak, UFCW (2020).
     • In 2023, Kroger committed to spending $770 million more on employee pay and benefits, reflecting ongoing investment in its workforce amid a tight labor market Kroger to spend $770M more on employee pay and benefits this year amid ‘labor hoarding’ trend, Fortune (2023).
     • Kroger offers a range of benefits, including health insurance, retirement plans, and educational assistance through programs like the Kroger Scholars Program (distributing over 3,000 scholarships amounting to $4.2 million) and Feed Your Future (investing $20 million in education programs) Kroger Employee Benefits, The Human Capital Hub (2025).
   • Advocates’ Rationale: Kroger argues that it is committed to improving employee compensation and benefits. The company highlights its investments in wages and benefits as evidence of its dedication to supporting its workers, particularly during challenging times like the pandemic, and notes its efforts to provide financial assistance through programs like the Helping Hands Fund, which has distributed over $26.3 million to help over 34,000 employees Kroger Employee Benefits, The Human Capital Hub (2025).
2. Union Representation and Collective Bargaining
   • Argument: Kroger respects union contracts and works with labor unions to negotiate fair wages and benefits for its employees, ensuring job security and better working conditions.
   • Supporting Evidence:
     • Kroger has a long history of working with the United Food and Commercial Workers (UFCW), which represents a significant portion of its workforce. In 2022, Kroger proposed wage increases of up to $1.80 per hour over the life of the contract for its Columbus-area workers, with a starting rate rising to $14.25 per hour Kroger update: Grocery company details proposed pay increases for Columbus workers, Dayton Daily News (2022).
     • The company has pledged not to lay off frontline associates as part of its merger proposal with Albertsons, ensuring job security for unionized workers, and has committed to respecting union contracts Exclusive: Kroger and Albertsons CEOs give details on controversial $25 billion merger, The Denver Post (2023).
     • Recent union activities, such as Kroger warehouse workers in Las Vegas voting to join Teamsters Local 14 in 2025, indicate ongoing efforts to secure improved working conditions, better wages, and benefits through collective bargaining Kroger Warehouse Workers Vote Overwhelmingly to Join Teamsters, International Brotherhood of Teamsters (2025).
   • Advocates’ Rationale: Kroger asserts that it values its relationship with labor unions and is committed to negotiating fair contracts. The company argues that its willingness to engage in collective bargaining demonstrates its commitment to worker rights and fair treatment, as evidenced by its collaboration with the UFCW to address worker needs Kroger Union, United Food & Commercial Workers Union (2024).

Controversy 3: Religious Discrimination Lawsuit

In 2019, Kroger fired two employees at its Conway, Arkansas, store for refusing to wear a new uniform apron with a rainbow-colored heart logo, which they believed contradicted their religious beliefs. The U.S. Equal Employment Opportunity Commission (EEOC) filed a religious discrimination lawsuit on their behalf, which was settled in 2022 for $180,000, with Kroger paying $90,000 to each employee EEOC and Kroger Limited Partnership I Resolve Religious Discrimination Lawsuit, EEOC (2022).

Arguments Against Kroger (Employees and EEOC)

1. Failure to Accommodate Religious Beliefs
   • Argument: Kroger violated federal law by not accommodating the religious beliefs of the employees, who requested alternatives to wearing the apron with the rainbow logo.
   • Supporting Evidence:
     • The EEOC’s lawsuit stated that the employees offered to wear the apron with the logo covered or to wear a different apron without the logo, but Kroger refused to accommodate their requests, violating Title VII of the Civil Rights Act of 1964 EEOC Kroger Suit Shows Rift at Border of Religious Rights, Bias, Bloomberg Law (2020).
     • The employees believed the logo represented support for the LGBTQ community, which they felt contradicted their religious beliefs, as they held a sincere belief that homosexuality is a sin Kroger sued for allegedly firing workers who refused to wear rainbow symbol, NBC News (2020).
   • Advocates’ Rationale: The EEOC and the employees argue that Kroger failed to meet its legal obligation to provide reasonable accommodations for religious beliefs, emphasizing that the company should have explored alternatives rather than enforcing a uniform policy that conflicted with their faith.
2. Wrongful Termination
   • Argument: The employees were wrongfully terminated for exercising their right to religious expression, highlighting a lack of respect for religious diversity in the workplace.
   • Supporting Evidence:
     • The EEOC’s lawsuit alleged that Kroger disciplined and ultimately fired the employees for refusing to wear the apron, despite their requests for accommodation, leading to a settlement of $180,000 Kroger reaches $180K settlement in religious discrimination case over company uniform, The Hill (2022).
     • The settlement suggests that Kroger recognized the validity of the employees’ claims, as it included a commitment to intensify managers’ training on religious accommodations Kroger will settle religious discrimination lawsuit over ‘rainbow’ logo, The Washington Post (2022).
   • Advocates’ Rationale: Critics argue that Kroger’s actions sent a message that religious beliefs are not respected in the workplace. They emphasize that the company should have explored alternative solutions rather than resorting to termination, especially given the legal protections for religious expression.

Arguments For Kroger (Kroger)

1. Uniform Policy and Business Needs
   • Argument: Kroger had a legitimate business need for a consistent uniform policy, and the employees’ refusal to comply disrupted workplace cohesion and brand consistency.
   • Supporting Evidence:
     • Kroger denied that the logo was intended to represent the LGBTQ community, stating that it was part of the company’s “Our Promise” branding, a general symbol of customer service Kroger to pay $180K after firing workers who refused to wear logo allegedly resembling Pride flag, NBC News (2022).
     • The company argued that allowing exceptions to the uniform policy could lead to inconsistent enforcement and undermine workplace standards, as uniform policies are common in retail to maintain a professional appearance Kroger sued for religious discrimination after 2 employees refuse to wear apron with rainbow heart, THV11 (2020).
   • Advocates’ Rationale: Kroger maintains that it has the right to enforce a uniform policy to maintain a professional appearance and brand consistency. The company argues that accommodating every employee’s religious objection could set a precedent that is difficult to manage, especially in a large retail environment.
2. Settlement Without Admission of Wrongdoing
   • Argument: Kroger settled the lawsuit without admitting liability, indicating that the settlement was a pragmatic decision to avoid further litigation costs rather than an acknowledgment of wrongdoing.
   • Supporting Evidence:
     • Kroger stated in court filings that it denied the allegations of religious discrimination and settled to avoid further litigation costs, with the settlement reached after years of negotiation Kroger to pay $180K in lawsuit over workers who objected to rainbow apron, FOX19 (2022).
     • The settlement included a commitment to intensify managers’ training on religious accommodations, suggesting a proactive step to prevent future issues and improve workplace policies Kroger will settle religious discrimination lawsuit over ‘rainbow’ logo, The Washington Post (2022).
   • Advocates’ Rationale: Kroger argues that the settlement reflects a commitment to resolving disputes amicably rather than an admission of guilt. The company emphasizes its efforts to improve workplace policies and training to better address religious accommodation requests, as evidenced by the enhanced training commitment.

Summary Table of Controversies and Arguments

Controversy	Arguments Against	Arguments For
Kroger-Albertsons Merger	Reduces competition, raises prices, harms workers; divestiture plan inadequate.	Enhances competitiveness, lowers costs, preserves jobs; robust divestiture plan.
Worker Pay and Conditions	Low wages, poverty, food insecurity; disparity with executive pay.	Wage increases, benefits investments; union collaboration for fair contracts.
Religious Discrimination Lawsuit	Failed to accommodate beliefs, wrongful termination; settlement suggests validity.	Legitimate uniform policy, settled without admitting wrongdoing; enhanced training.

This table summarizes the key points, highlighting the complexity and differing perspectives on each issue.

Conclusion

Kroger’s controversies reflect broader societal debates about corporate responsibility, labor rights, and workplace diversity. The proposed merger with Albertsons raises concerns about market competition and worker welfare, with opponents fearing reduced consumer choice and labor protections, while proponents argue it is necessary for Kroger to compete with larger retailers. Worker pay and conditions reveal a stark contrast between Kroger’s profitability and the financial struggles of many employees, though the company has made efforts to increase wages and benefits. The religious discrimination lawsuit underscores the delicate balance between enforcing workplace policies and respecting employees’ religious beliefs, with Kroger settling the case while maintaining its position on uniform standards.

By presenting the strongest arguments from both sides, supported by credible data and sources, we can better understand the nuances of these issues and the perspectives of the most credible advocates, ensuring a fair and comprehensive analysis.

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Key Citations

• FTC Challenges Kroger’s Acquisition of Albertsons, Federal Trade Commission (2024) [https://www.ftc.gov/news-events/news/press-releases/2024/02/ftc-challenges-krogers-acquisition-albertsons]
• Kroger-Albertsons Merger Blocked by Courts, Reuters (2024) [https://www.reuters.com/legal/us-court-blocks-krogers-25-billion-acquisition-grocery-rival-albertsons-2024-12-10/]
• Hungry at the Table: A Survey of Kroger Workers, Economic Roundtable (2022) [https://economicrt.org/publication/hungry-at-the-table/]
• Business Insider, Kroger Workers Face Hunger, Homelessness Amid Company Profits, Article (2022) [https://www.businessinsider.com/1-in-7-kroger-workers-homeless-many-food-insecure-rent-2022-1]
• Kroger, UFCW Announce Increased Pay, Benefits for Grocery Workers on Front Lines of Coronavirus Outbreak, UFCW (2020) [https://www.ufcw.org/press-releases/krogercoronavirus/]
• Kroger to spend $770M more on employee pay and benefits this year amid ‘labor hoarding’ trend, Fortune (2023) [https://fortune.com/2023/03/03/kroger-home