Kroger, Albertsons possible merger leaves consumers worried about rising food prices

BALA CYNWYD, Pennsylvania (WPVI) -- Two of the largest grocery store chains in the nation are looking to join forces to compete with the stronghold that Amazon and Walmart have on the industry. But consumers worry it will cause food prices to go up during a time when inflation is already so high.

"Eggs are $5 which is crazy to me," said Lydia Gilliard of West Philadelphia.

In the Philadelphia Metro area, prices rose by 1% in September, but costs skyrocketed more than 17% compared to this time last year.

SEE ALSO: Kroger buys Albertsons in massive supermarket merger agreement

When Kroger announced Friday that it would merge with Albertsons, the owner of Acme grocery stores, it raised some questions about its potential impact on consumers.

"It seems like when stores merge together the company changes the policies and customer service today is not to the level it once used to be," said David Jackson of North Philadelphia.

"When this settles down be prepared to be paying more," said Dr. John Stanton, professor of food and marketing at St. Joseph's University.

Stanton says this move would make Acme more profitable.

"These two are among the largest chains in America. I don't think that the government is going to let this go through unless they sell off some of their stores in areas of overlap," said Stanton.

Kroger says it would reinvest $500 million into price reductions, spend $1.3 billion updating Albertsons stores and $1 billion on higher employee wages and improved benefits.

One thing will likely remain the same: customers will still see the Acme name. If the merger is approved, changes will happen in 2024.