A MAJOR retailer has reached a lawsuit settlement with a competitor after a failed merger.
The national chains have been locked in a legal battle for most of the year.
Kroger CEO Rodney McMullen says the grocer has reached a settlement following a lawsuit filed against it earlier this year.[/caption]
Kroger announced on Monday that it has settled a lawsuit filed by C&S Wholesale after the attempted merger with Albertsons fell through.
Following a lengthy legal battle, Kroger says it’s committed to an amicable relationship with the wholesaler.
“We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward,” Chairman and CEO of Kroger Ron Sargent said in a statement.
“Kroger remains focused on serving our customers and running great stores across the U.S.”
Kroger notes that the details of the settlement are confidential.
GOOD DEAL?
The two grocers had claimed that the merger would help bring down prices.
But some industry experts say the failed merger could be a good thing for shoppers.
Alex Lubyansky, managing partner of Acquisition Stars, told the US Sun that ongoing rivalry between the two stores could mean lower prices.
“Consumers will persist in gaining advantages from the rivalry between Kroger and Albertsons, which can result in improved prices and services,” Lubyansky said.
Furthermore, the FTC said that the merger would increase prices for consumers.
“Direct competition between Kroger and Albertsons has brought grocery prices down and the quality of grocery products and services up,” the FTC reported.
Still, uncertainty remains.
“The inability to merge may restrict the companies’ capacity to invest in technological advancements and infrastructure enhancements that could enrich the shopping experience,” he added.
HEATED BATTLE
C&S accused Kroger of failing to take its “best efforts” and to move forward with “any and all actions” to secure regulatory approval of the failed merger.
However, Kroger stood its ground during the legal proceedings.
It alleged that Albertsons worked secretly with C&S to divert more Kroger stores to the wholesaler.
Nonetheless, C&S accused Kroger of failing to pay a termination fee after the deal failed to materialize.
Kroger argued that the wholesaler wasn’t entitled to a $125 million merger termination fee due to various contract breaches during its battle with regulators, according to Restaurant Dive.
Kroger’s refund policy
Kroger shoppers can return items with or without a receipt.
All Kroger Co. Family of Stores can accept returns of items purchased at any location within 30 days of purchase.
Returns with receipts:
- Customers can use digital or paper receipts to get a refund
- The refund will be returned in the same payment method the purchase was made. Either going back on a card or handed back in cash
Returns without receipts:
- Customers wanting to return more than $10 will receive a store merchandise gift card for the value
- Customers who spent less than $10 will receive cash
