Connect with us

Alaska

The parent companies of 2 of Alaska’s grocers want to merge. Here’s what we know.

Published

on

The parent companies of 2 of Alaska’s grocers want to merge. Here’s what we know.



Shoppers come and go from Fred Meyer and Carrs stores that face each other across the Seward Highway in Midtown Anchorage on Thursday, Aug. 8, 2024. The parent companies of the competing businesses, Kroger and Albertsons, want to merge. (Matt Faubion/Alaska Public Media)

Last week, Alaska Congresswoman Mary Peltola joined 27 other D.C. lawmakers from 16 states in a legal brief backing a lawsuit by federal regulators to block a massive, national grocery store merger. 

Most Alaskans live in a community where a Fred Meyer store competes directly with a Carrs or a Safeway, so the proposal for one parent company to buy the other for $24.6 billion has a lot of Alaska consumers worried. 

Here’s what we know about where the proposal is now, after it was first announced in October of 2022. 

Advertisement

What’s at stake? 

If you take what the companies are saying in good faith, not much. They’ve made sweeping promises about the good things that will happen and the bad things that won’t if Kroger, which owns Fred Meyer, is allowed to buy Albertsons, which owns Safeway and Carrs. The companies say investors, customers, workers and communities are all supposed to benefit. 

“We are confident our transaction with the proposed divestitures will mean lower prices and more choices for customers,” Kroger CEO Rodney McMullen said in a video about the proposed merger. “It will mean more opportunities for retail associates to grow their career while we secure the future of good paying union jobs.”

Here are some of the specific promises Kroger and Albertsons have made: 

  • No store closures
  • No pharmacy closures
  • No front-line job losses with protection for worker pay and benefits
  • A $500 million investment in reducing prices
  • A $1 billion investment in employee benefits
  • A $1.3 billion investment to improve Albertsons stores

Kroger points to its 20-year track record that includes lowering its profit margins to keep prices down amid past acquisitions.

How can all of these promises be possible? 

The idea is if Kroger and Albertsons merge, they’ll be in better shape to compete with even bigger retailers, like Costco and Walmart, as well as growing competitors, like dollar stores that now sell groceries and even Amazon. Bigger scale means bigger efficiencies, and that’s where the upside is supposed to come from.

Of course, most Alaskans live in communities where Fred Meyer competes with Carrs or Safeway. Specifically, that’s Anchorage, Eagle River, Palmer, Wasilla, Fairbanks, Juneau and Soldotna.

Advertisement

Federal regulators are wary of mergers because they can be anticompetitive, concentrating too much market power and hurting regular shoppers. To try to win regulators’ approval, Kroger and Albertsons say they’re prepared to sell off all 15 of the Carrs and Safeway stores in those Alaska communities, plus three more in Girdwood, Kenai and North Pole, to a company called C&S Wholesale Grocers based in New Hampshire. 

The Safeways in Seward, Valdez, Kodiak, Ketchikan, Nome and Unalaska are not on the divestment list and would remain with the merged company.

Nationally, Kroger and Albertsons plan to sell a total of 579 stores, plus six distribution centers and a dairy plant, to C&S. 

Again, McMullen says these divested stores won’t close, because C&S is committed to running them as they are today. 

Albertsons CEO Vivek Sankoran says C&S will make the landscape more competitive. 

Advertisement

“Their deep industry knowledge and experience gives us great confidence in their ability to become even fiercer competitors moving forward,” Sankoran said in the video. 

C&S CEO Eric Winn also says his company is playing the long game.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” Winn said in an April press release.

The United Food and Commercial Workers Local 555, which represents 30,000 grocery store workers in Oregon, Idaho and Washington, came out in support of the merger in February. However, the parent union, which represents 1.2 million workers, voted last year to oppose the merger. Other UFCW locals, including Alaska’s, also oppose the merger. 

So what’s the problem? Why do people oppose the merge?

Basically, opponents just don’t believe the companies, and there isn’t anything in place to hold them to their promises. 

Advertisement

In Alaska, the opponents include Democratic Congresswoman Mary Peltola, 24 state lawmakers, the grocery store workers’ union and lots of regular Alaskans.

“It’s a huge issue for Alaskans that resonates. It’s not a political issue, it’s a pocketbook issue,” said Veri di Suvero, executive director of the Alaska Public Interest Research Group, a statewide consumer advocacy nonprofit that also opposes the merger. “Whether or not it’s in good faith, about these spinoffs, we’ve seen over and over again that they don’t work.”

Di Suvero points back to 1999, when Safeway bought out Carrs. AKPIRG and Alaska’s attorney general got involved, and they worked out a deal to sell off seven stores to let the merger go through.

Six of those stores became Alaska Marketplace grocery stores. They all closed within about a year. 

The seventh, at the University Center mall in Midtown Anchorage, survived and became a different grocery store, Natural Pantry, which eventually outgrew the space and built its current, standalone location off 36th Avenue.

Advertisement

Fast forward to 2015, and Safeway got swallowed up by Albertsons. Federal regulators approved that deal after the companies agreed to divest 168 stores. 146 went to a small Washington grocery retailer called Haggen. 

Haggen wasn’t successful, either. Within a year, Haggen sued Albertsons and accused it of sabotaging stores it bought. It got sued back by Albertsons and filed for bankruptcy. In the ensuing firesale, Albertsons ended up buying back many of its divested stores, and ultimately what remained of Haggen itself. 

Di Suvero is also concerned about how unique Alaska’s supply chain is, particularly its heavy dependence on a single port. Di Suvero and other opponents question if C&S has the expertise and wherewithal to step in and run its new grocery stores successfully.

So critics think C&S is setting itself up for failure, like Haggen?

Yes.

C&S isn’t a national player in the world of retail groceries. It owns the Piggly Wiggly brand and runs some Piggly Wiggly stores directly, but most are independently owned and operated under a franchise license. It also runs 11 Grand Union markets.

Advertisement

But C&S is a big deal nationally in grocery wholesaling, supplying more than 7,500 supermarkets. Forbes says it’s an industry leader in supply chain innovation, the largest wholesale grocery supply company in the country and the eighth biggest privately held company in the country. So C&S is in a totally different league from Haggen. 

That said, the Federal Trade Commission says C&S doesn’t have its own store brand product lines, loyalty programs or e-commerce platforms it needs to successfully compete. 

Does Alaska figure prominently into the overall merger? 

No. 

Kroger and Albertsons combined have 36 stores in the state. That’s 11 Fred Meyers, and 24 Carrs or Safeways plus Crow Creek Mercantile in Girdwood. Across the country, they have about 5,000.

Advertisement

And unlike in the Safeway-Carrs merger in 1999, the governor’s office has been hands off. Gov. Mike Dunleavy has not weighed in. The state Department of Law, which has its own consumer protection unit, says it’s monitoring the merger and the Federal Trade Commission’s legal fight to stop it. 

Outside of Alaska, eight states and the District of Columbia have joined the FTC’s lawsuit in federal court in Oregon.

And the attorneys general of Colorado and Washington have their own similar lawsuits. 

What happens if the merger gets shot down? 

There’s a lot invested in this merger. A reporter with WCPO in Cincinnati, where Kroger is headquartered, dug through financial filings and found that through March, the two parent companies had already spent $864 million in merger-related expenses. 

WCPO also found that Kroger had agreed to pay Albertsons $600 million if the merger fails. 

Advertisement

So that’s a big incentive for Kroger to appeal if these legal fights don’t go its way. 

So what’s next?

The legal stuff. 

Hearings in the FTC case at the U.S. District Court of Oregon begin Aug. 26. This case is important, but won’t necessarily make or break the merger. The judge there is supposed to rule on whether or not to pause the merger, while more substantive arguments go before an administrative law judge in Washington, D.C. 

The trial in the Washington state court is scheduled to begin Sept. 16, and, separately, a Colorado state judge last month imposed his own order to pause the merger, pending a legal challenge there. That trial is scheduled to begin Sept. 30. 


Advertisement
a portrait of a man outside

Jeremy Hsieh covers Anchorage with an emphasis on housing, homelessness, infrastructure and development. Reach him atjhsieh@alaskapublic.orgor 907-550-8428. Read more about Jeremyhere.





Source link

Alaska

Here’s how some Alaska lawmakers are trying to get rid of daylight saving time

Published

on

Here’s how some Alaska lawmakers are trying to get rid of daylight saving time


Morning sun reaches the peaks near Turnagain Arm as fog hovers above the water on March 20, 2024. (Marc Lester / ADN)

Alaskans, like millions of Americans in other parts of the country, will move their clocks one hour ahead on Sunday for daylight saving time.

Many see the twice-a-year clock shift as an irksome practice that should be eliminated. Research has shown that the clock changes disrupt circadian rhythm, leading to negative health effects.

So what, if anything, are Alaska lawmakers doing to change the situation?

The Senate voted in May to advance a bill that would permanently eliminate daylight saving time in Alaska — but only if the federal government agreed to move Alaska to Pacific Standard Time, the same time zone used by Washington state, Oregon, California, Nevada and parts of Idaho.

Advertisement

Sen. Kelly Merrick, an Eagle River Republican who sponsored the bill, said her proposal aims to address concerns that arise from past proposals to eliminate daylight saving time while keeping Alaska in its current time zone. Effectively, that would mean Alaska is offset from Seattle by two hours for part of the year, creating challenges for Alaskans who are dependent on Lower 48 time zones — including bankers, broadcasters and tourism operators.

The House has yet to take up Merrick’s bill. There are also two dueling House bills introduced last year — neither of which has advanced — to either permanently remain in daylight saving time or permanently remain in standard time.

Federal law allows states to exempt themselves from observing daylight saving time, which generally begins in March and ends in November. However, states are not allowed to move permanently to daylight saving time without congressional authorization.

The U.S. Senate voted in 2022 in favor of moving to permanently adopt daylight saving time. The legislation has not been voted on in the U.S. House.

Hawaii and Arizona are the two states to exempt themselves from observing daylight saving time so far.

Advertisement

Alaska has long considered various proposals for eliminating the twice-a-year clock changes, with more than a dozen bills proposed in three decades. None have passed both bodies.

But there is relatively recent precedent for changing the way Alaskans set their clocks.

Until the 1980s, Alaska had four time zones. Before the change, the Southeast Panhandle, including Juneau, operated in Pacific Standard Time — the same as the West Coast of the Lower 48. Clocks in most of the state were set two hours earlier — the same time zone as Hawaii. Kotzebue, Nome and much of the Aleutian Chain were on Bering Standard Time, an hour behind Hawaii.

Moving most of the state to a single time zone was meant to create simplicity for both residents and visitors alike.

What would it mean for Alaska to permanently move to Pacific Standard Time? On the shortest days of the year, the sun would rise in Anchorage around 11 a.m. and set around 5 p.m. On the longest days of the year, the sun would rise in Anchorage shortly after 5 a.m. and set well past midnight.

Advertisement

For proponents of after-work outdoor recreation, the idea may seem appealing. For longer stretches of the year, Alaskans will be able to enjoy sunlight after leaving the office or school. The price to pay? More mornings waking in the dark.





Source link

Continue Reading

Alaska

Alaska 2025 summer tourism was ‘soft’ amid economic jitters and reduced marketing money

Published

on

Alaska 2025 summer tourism was ‘soft’ amid economic jitters and reduced marketing money


Tourists cross Fifth Avenue in downtown Anchorage during the rainfall on Monday, June 9, 2025. (Bill Roth / ADN)

Visitor numbers to Alaska were nearly flat last summer following a dip in cruise ship traffic, an unusual plateau for an industry that typically sees solid growth.

The state saw just 4,000 more tourists last summer, compared to the previous year, according to a new report commissioned by the Alaska Travel Industry Association.

That’s a bump of 0.1% percent, in a total of 2.7 million visitors.

“A flat season is OK, I guess,” Jillian Simpson, president of the Alaska Travel Industry Association, said in an interview this week.

Advertisement

“It’s not great,” she said. “Certainly it feels like there’s an opportunity for tourism to be growing in Alaska. But it wasn’t a decline. And so that feels like a win.”

Early season last June, some operators reported slightly slower bookings in some sectors, such as international visitors, amid geopolitical and economic concerns caused by President Donald Trump’s global trade wars and rhetoric.

The leveling off in visitor numbers is unusual for the industry, she said.

“We’ve been on a steady trend of growth for several years,” she said, not counting the COVID-related downturn in 2020 when cruise ships to Alaska were canceled.

Also potentially affecting the summer tourism numbers: The group had less marketing funding to reach potential visitors, she said.

Advertisement

That money dropped after the group had used a COVID-related $5 million federal grant the previous year.

Alaska saw about 1.8 million travelers arrive by cruise ship last year, a decrease of 0.4% from the year earlier, the report said.

About 900,000 travelers arrived by air, an increase of 0.8%.

Less than 100,000 people arrived by highway or ferry.

Anchorage snapshot

While most cruise guests visit Southeast communities, about a quarter of them travel to Seward and Whittier, delivering visitors to Anchorage.

Advertisement

That cross-gulf cruise traffic fell 5% from the year before, the report said.

That likely had to do with how cruise lines allocated their ships last year, Simpson said.

The cross-gulf numbers are expected to rise this summer, in part because a new dock in Seward will be available to handle larger ships, she said.

Anchorage bed tax revenues, a tourism indicator, were down last summer, compared to a year earlier, the report said.

The annual income fell to $45 million, falling more than $4 million from the year before, an 8% drop.

Advertisement

Hotel demand for Anchorage last summer was a bit softer compared to the year before, said Jack Bonney with Visit Anchorage, the city’s tourism bureau.

But that trend has recently reversed, with growth in January up from the year before.

Hotel supply was tight last year, with some renovations underway and some hotels in recent years coming off the tourism market.

But the situation for hotel supply has started to shift, too, with growth in that area, he said.

For example, a 141-room Courtyard by Marriott Hotel has planned to open its doors in spring in Midtown, at 4960 A St.

Advertisement

Cross-gulf cruise ship capacity is also expected to grow this summer by 10% to 15%, he said.

That should also help boost visitor numbers, Bonney said.

Advance hotel bookings for so far this year are showing positive signs, he said.

“It appears that, at least for advanced bookings, at the same time last year, we’re ahead of the game,” he said.





Source link

Advertisement
Continue Reading

Alaska

Bangladeshi man flown to Alaska to face federal charges in ‘extensive’ child sexual exploitation case

Published

on

Bangladeshi man flown to Alaska to face federal charges in ‘extensive’ child sexual exploitation case


Bangladeshi national Zobaidul Amin is led to an aircraft in Malaysia by FBI agents before flying to Anchorage on Wednesday, March 4, 2026. Amin was indicted in 2022 on charges of operating an international child sex exploition enterprise and spent the past three years in Malaysia. (Photo provided by FBI)

A Bangladeshi man who authorities say operated an international child sexual exploitation enterprise involving hundreds of children, including those in Alaska, arrived in Anchorage this week after spending several years out on bail in Malaysia.

Zobaidul Amin, 28, made his first federal court appearance in Anchorage on Thursday.

A federal grand jury in Alaska indicted Amin in July 2022 on 13 charges related to the production and distribution of child pornography, cyberstalking and child exploitation. Law enforcement in Malaysia was prosecuting him on similar accusations.

Amin is accused of orchestrating a vast online sexual extortion ring that resulted in the abuse of minors, primarily from the United States.

Advertisement

“Amin delighted in sexually abusing hundreds of minor victims over social media,” prosecutors said in a memorandum filed Thursday recommending that a judge keep Amin jailed while awaiting trial. “He bragged about causing victims to become suicidal and engage in self-harm. He shared hundreds of nude images and videos of minor victims all over the internet and encouraged other perpetrators to do the same.”

The FBI arrested Amin on Wednesday in Malaysia and took him to Alaska, Anchorage FBI spokesperson Chloe Martin said in an emailed statement.

FBI agents wait on the tarmac as a plane carrying Bangladeshi national Zobaidul Amin from Malaysia arrives in Anchorage on Wednesday, March 4, 2026. Amin was indicted in 2022 on charges of operating an international child sex exploition enterprise and spent the past three years in Malaysia. (Photo provided by FBI)

Amin pleaded not guilty at Thursday’s hearing.

U.S. Magistrate Judge Kyle Reardon assigned Amin a public defender and ordered that he remained jailed while his case proceeds.

Amin, wearing a yellow Anchorage Correctional Complex jumpsuit, quietly spoke only two words during the hearing: “Yes,” when Reardon asked whether he understood his rights, and “yes” after Reardon asked if Amin agreed to waive his right to a speedy trial to allow his attorney to adequately prepare.

For more than three years, federal officials sought to have Amin “expelled” from Malaysia, where he was a medical student, to face charges in the U.S., prosecutors said in their memorandum.

Advertisement

Authorities have said they uncovered the sophisticated child sexual abuse material production scheme after a 14-year-old girl told Alaska State Troopers in 2021 that Amin coerced her via social media into sending him lewd images of herself and participating in sexually explicit conduct over video calls.

When the girl stopped communicating with Amin, prosecutors said, he carried out previous threats to distribute the images to her friends and social media followers.

“Dozens of search warrants, subpoenas, and legal process revealed that Amin did the same thing to hundreds of minor victims,” prosecutors said in the detention memo, adding that it was one of the “most extensive” operations of its kind investigated by law enforcement.

But authorities had been unable to extradite Amin from Malaysia, they said.

Malaysian authorities, with help from U.S. law enforcement, also charged Amin for offenses related to the production and distribution of child sexual abuse images in 2022.

Advertisement

He was released from custody in Malaysia after his family paid a bail equivalent to $24,000, according to the detention memo.

The requirements of Amin’s release included that he surrender his passport, not contact his victims or engage in child sexual abuse image conduct, and report to police monthly, according to the memo.

Prosecutors said they were not aware of any violations but added that it was unclear how strictly the requirements were enforced.

Had Amin fled to Bangladesh, he would have been able to evade prosecution because the U.S. doesn’t have an extradition treaty with the South Asian country, according to the memo.

Officials didn’t publicly disclose additional details about the circumstances that led to his arrest and transfer to Alaska or why he hadn’t been moved to the U.S. sooner.

Advertisement

The FBI and U.S. Department of Justice have been working “in conjunction with Malaysian authorities” to get Amin transferred to U.S. custody, the U.S. Attorney’s Office in Alaska said in a prepared statement Thursday.

A child exploitation and human trafficking task force based out of the FBI’s Anchorage offices investigated the case with the support of numerous agencies, including the Anchorage Police Department and Alaska State Troopers, the Royal Malaysia Police, and a long list of law enforcement entities in Wyoming, Oregon, West Virginia and Florida as well as cities including Atlanta, Los Angeles, Minneapolis, Newark, Salt Lake City and Seattle.





Source link

Continue Reading

Trending