Strategic Resource Group

Discussion on the Kroger-Albertsons Merger, the Federal Trade Commission, Food Inflation, and Winners & Losers (including America Being the #1 Loser from FTC) & Typically “No Wedding when a Bride Sues a Groom” with John Catsimatidis & Burt Flickinger of Strategic Resource Group on the #1 USA & Global Radio, 77 WABC Radio, Sunday. 𝐓𝐡𝐞 𝐍𝐞𝐰 𝐀𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧: Using the PAST to predict the FUTURE, gas prices will decline by 50%, possibly bringing prices down to $2 per gallon or even lower. Fertilizer costs should decrease, leading to lower prices for farmers and livestock. The whole supply chain costs will decrease, reversing the 40% increase in food prices seen during the previous administration. Food prices will decline by 10-20%, with even greater reductions likely over time. 𝐓𝐡𝐞 𝐊𝐫𝐨𝐠𝐞𝐫-𝐀𝐥𝐛𝐞𝐫𝐭𝐬𝐨𝐧𝐬 𝐌𝐞𝐫𝐠𝐞𝐫: The FTC’s decision reflected an Orwellian obtuseness for failure to grasp “Retail Reality.” WHO WINS? Walmart Amazon FFA Jeff Bezos (the Wealthiest Man in the World) & The Walton/WMT family makes $100 Million/every day, Shopping Centers MarketWatch Link: Public Schools/Students/Public Education https://lnkd.in/gnuBy-HX WHO LOSES? All of AMERICA! Consumers The Farmers Unions (UFCW)/Workers Albertsons According to our Strategic Resource Group study, Albertsons is 40% below the supermarket average in sales per square foot & Safeway is 20% below. 𝐇𝐎𝐖 𝐝𝐨𝐞𝐬 𝐭𝐡𝐞 𝐧𝐞𝐰 𝐚𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐀𝐅𝐅𝐄𝐂𝐓 𝐭𝐡𝐞 𝐦𝐞𝐫𝐠𝐞𝐫? The new administration would typically consider a merger more favorably, but Albertsons announced they are suing Kroger & typically “there isn’t A Wedding when a Brides Sues a Groom.” Thanks to John Catsimatidis’ All-Star team Executive Producer/SVP Matt Wanning & President Chad Lopez & Flickinger Segment Link: https://lnkd.in/gn9wgn93 (sound jumbled for a few seconds…& N.B. Sponsored by AWS: Amazon Web Services (AWS) & ASU.edu) & 77 WABC 9AM - 10AM ET Entire Segment Link: https://lnkd.in/gkWUvQcM #krogeralbertsonsmerger #kroger #albertsons #Orwellian #MarketWatch #PublicEducation #PublicSchoolStudents #federaltradecommission #ftc #bankruptShoppingCenters #Farmers #FFANationalOrganization #retail #FoodInflation #Supermarkets #DrugStores #Unions #UFCW #FoodRetail #StrategicResourceGroup

Kroger-Albertsons Companies Earnings & Federal Trade Commission Merger Update LIVE from the New York Stock Exchange (NYSE) with award-winning Anchor & Journalist Nicole Petallides from the Schwab Network. As Nicole Petallides & I discussed, "Kroger is the BEST retailer of any kind. As good as Kroger’s positive numbers are today in an overall down stock market, they'll be even better next year & the years ahead," with successful contributions to the outstanding leadership of CEO Rodney McMullen. 𝟒 𝐊𝐞𝐲 𝐂𝐨𝐫𝐧𝐞𝐫𝐬𝐭𝐨𝐧𝐞𝐬 𝐭𝐨 𝐊𝐫𝐨𝐠𝐞𝐫'𝐬 𝐒𝐮𝐜𝐜𝐞𝐬𝐬: 1. With 7,000 drug stores closing between CVS Health, Walgreens, & RITE AID, this is an advantage to Kroger (Kroger being the 4th largest drugstore chain in the US). 2. The #1 Retailer in Terms of Food & Beverage Manufacturing: "Kroger Brands own Label sales (ref. PLMA - Private Label Manufacturers Association) are growing double digits, & Kroger Plus is growing with its Disney partnership." Kroger has the strongest private label network of any retailer in N. America because of its owned & operated 30+ manufacturing plants. Unlike Walmart, Kroger operates its own manufacturing plants, sourcing directly from US farmers. With 30+ food & beverage manufacturing plants, Kroger’s private label sales are up significantly, & gross margins are up as they continue saving shoppers more money with Great Values on high-quality Kroger products to help “To Feed & Uplift The Human Spirit." 3. Kroger is THE BEST Meritocracy, nationally & internationally, for women, people of color, & all. Additionally, with outstanding Mary Ellen Adcock, COO, being a great Chief Merchandising Officer, Kroger will connect even more with branded goods companies & all consumers. 4. The Combined Companies are raising shoppers' standard of living, with limited-income neighborhood stores doing just as well in middle-income neighborhoods, such as Albertsons store #3098 on the S. Side of Chicago (Jewel-Osco, Michelle L. W., Tomas) & Kroger store #185 in S-LA (Ralphs Grocery Company, Cindy Carillo). Kroger, along with ALDI USA, Costco Wholesale, BJ's, & Walmart, is among the fastest-growing retailers in N. America with increased customer counts by providing the highest quality & value for food. On the side of a Major, Meaningful Opportunity in Sales Per. Sq. Ft. & Per Store, Albertsons stores are 40% below the Food Retail Industry norm, and Safeway stores are 20% below norm. Like our S. M. Flickinger family (lnkd.in/gHRYKV4T) did buying Albertsons NYState stores, Kroger can acquire & very significantly increase sales & profit & jobs per store--while decreasing grocery prices very meaningfully for all Consumers. After the USA elections, Walmart, Amazon, Costco, et al. should receive less taxpayer subsidies which IMPO is uncompetitive & catalyzed an “Accelerating Retail Ice Age!” Many thanks to Schwab for their assistance in producing with Henry Mellet & Lauren Justice Fleer, & Strategic Resource Group!

Happy Thanksgiving from the SRG Team! A special shout-out to the grocery stores for setting the table for countless families to enjoy. Some of our favorite and freshest retailers go to Kroger, WinCo Foods, Jewel-Osco, Casey's Foods, Ralphs Grocery Company, and many others that we visited in Chicago, New York, and around the US this holiday season. Your impressive selections have raised the standard for excellence! We’re grateful for the hard work and dedication that goes into making the holidays memorable.

"We don’t know them all, but we owe them all." We honor your unwavering commitment to defending freedom and protecting our nation. Thank you to all veterans for your extraordinary service. We are proud to recognize and support you today and always. 🇺🇸

Update: Unions Underfunded Pension Plans - UFCW, et al., the Federal Trade Commission, Kroger-Albertsons Companies-C&S Wholesale Grocers Merger & Massive contingent benefits future liabilities if FTC & State's AGs deny the merger. The UFCW Local Birmingham, Alabama mirrors our reverence for heroic Elaise Fox, the first major labor union African American Woman President & revered original JLMC (JLMC-UFCW-International Brotherhood of Teamsters-BCTGM-“Bakers”) co-leader who intrepidly fought IMPO unfair Walmart tax-payer funded subsidies that reduced her AL-MS UFCW membership from 10,000+ when President Bill Clinton Foundation left office to less than 400 AL-MS UFCW members now. IMPO, this is in part from a combination of FTC draconian divestitures & rogue Private Equity firms that IMPO the FTC. The U.S. Department of Justice, the SEC, U.S. Securities and Exchange Commission, & U.S. Department of Justice failed to protect Unions, Union Workers, Unionized Retailers, CPG Suppliers, Consumers, Shopping Center Owners, Communities in the Gulf Coast Region & across America. Strategic Resource Group (SRG) worked both pro bono with Elaise, 1657, UFCW & Region 5 & professionally for as highly informed industry experts to help research & provide the U.S. Bankruptcy powerful SRG Reports to recover meaningful money for the Teamsters & UFCW & unsecured & secured creditors w/ the outstanding guidance of the fantastic bankruptcy law team at Greenberg Traurig, LLP w/ Bracewell LLP w/ joe ciccarelli & bob lewis of tremendous NACM Commercial Services team for maximum recovery for Elaise Fox & George Lewis Seidenfaden Sr. & UFCW & Unions & PepsiCo, General Mills, The Coca-Cola Company, et al. through tremendous Finance & Credit Expert & Trustee: William/Bill Kaye. Link to UFCW Bruno’s bankruptcy decision: https://bit.ly/4hrZtme Since then, IMPO the FTC, State/s AGs, can be lighting a proverbial “Ticking Time Bomb” of potential lost Union members’ defined benefits lost of Cataclysmic proportion---- if the complete Kroger-Albertsons-C&S Merger is denied. A merger denial ruling can be the business equivalent of being body slammed by the FTC & AGs w/ the UFCW & & Union Workers benefits being eviscerated by FTC Orwellian like Obtuse & Absurd decisions like Penn Traffic/PNFT in 2010. A documentary w/ award-winning journalists will hold the FTC Chairs, Commissioners & Competition Bureau accountable for ruining the lives of generations of UFCW workers & immigrant members---while letting tax-payer funded massive subsidies to ALDI USA, Costco Wholesale, Target & primarily Amazon & Walmart: “Strip Mine America” Happy Halloween & more data to follow. Yankee Stadium Events Team Picture: Henry Mellet (Right), Nick Flickinger & proud father of great son in the middle), & Tyrone/Ty Stevens https://lnkd.in/e3PMkcj8 (Left). Ty is one of the most highly regarded, very effective & constructive leaders in Gov’t. Communications: Cities, Counties, States & USA!

Kroger-Albertsons Companies Merger Update: Varney Lydia Hu Fox Business Network: The Kroger-Albertsons merger will expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers’ shopping experience. Blocking this merger would only serve to strengthen larger, non-unionized retailers like Walmart, Costco Wholesale and Amazon, by allowing them to maintain and increase their overwhelming and growing dominance of the grocery industry. John T Niccollai, President UFCW Local 464A, also discussed the complexity of the situation for the UFCW – the East Coast and West Coast are different. "It's really a dichotomous situation. The merger would be helpful to some areas and a detriment to other areas." As Strategic Resource Group reported before and bears repeating, if the merger is not approved and Albertsons decides to close stores many thousands of union jobs could be lost. The impact even more UFCW job losses to an already impaired Pension Benefit Guaranty Corporation (PBGC) could be catastrophic for pensioners who have spent their entire careers working in stores and rely on the fixed income every month. Organized employers and their unions must work together to address many issues facing the industry -- pension funds represent one of the most challenging of those issues. While plan design as it exists in traditional Defined Benefit pension plans makes sustainability difficult, the decline of contributing employers makes for an even greater and seemingly intractable problem. Both unions and employers must make every effort to ensure the long-term health of the remaining employers if this system has any chance to survive. More important facts and details to come on this topic soon. View the Entire Clip Here: https://lnkd.in/eTKAJusu

UPDATE on Federal Trade Commission & PHARMACY DESERTS Re Kroger-Albertsons Companies-C&S Wholesale Grocers Merger’s Strategic Food & Pharmacy Solution for Consumers across America: Joining the conversation with award-winning, Business Reporter Luther Turmelle on CT Insider about the closure of several thousand drug stores by major pharmacy chains like CVS Health, RITE AID, and Walgreens across the USA. "More than 16 million people live in pharmacy deserts," according to the trade publication Pharmacy Times. "RiteAid, CVS, and Walgreens have all been hurt by the growth of pharmacy operations at Costco Wholesale, Target and Amazon," I mentioned in the article. On another note, other retailers, like Kroger, could constructively expand into Connecticut & the NE & Central & Southern & Western U.S. to lower prices & run very good Food & Pharmacy combination stores. With an approved Kroger-Albertsons Merger, "it could mean an expansion of grocery stores with supermarkets” ….with Rx “that would include Connecticut…" Both of those chains have pharmacies located in the front of their stores. This is increasingly more important, as both Ahold Delhaize-Stop & Shop & Wakefern Food Corp.-ShopRite- SRS-Corporate are closing numerous, high volume, well located Food & Pharmacy UFCW Stores, which could no longer compete against the $7.7+ Billion in tax-payer-gov’t. subsidized Walmart & Amazon stores. As a combined entity, Kroger and Albertsons have the nation's fourth largest pharmacy operation,” according to Flickinger, which concomitantly goes a long way to mitigate the rapidly accelerating Pharmacy Deserts crises across the USA from the closings of several thousands of Chain Drug Stores {Bartell Drugs, CVS Health, Walgreens, RITE AID, as well as some Target and Walmart, which with FTC benign neglect that catalyzed the creation of the Top 100 FOOD DESERTS in the USA, all in Walmart USA Grocery Monopoly Markets (source ILSR Report)}. "Albertsons owns Star Market, which is in Massachusetts, and Shaw's, which used to have a presence in Connecticut," I mentioned, suggesting that a new player could potentially re-enter the market. The best news for Consumers, More Competition & Lower Prices, Farmers, Workers, Unions, Local Charities, and a united nations of people is for Kroger-Albertsons-C&S to be the first national Food & Drug Combination store retail chain. Disclosure: Burt Flickinger III’s family, founded by an orphan w/an 8th-grade education, pioneered retail franchising & supported the growth of USA & global retail independents, co-ops, & chains. Kindly click on Link: https://lnkd.in/gHRYKV4T. For 25+ years, he’s done pro bono work for unions like UFCW, International Brotherhood of Teamsters, & Region 5 & Local 1657: AL & MS, as well as IGA, ROFDA, NAWGA, FMI, GMA, NGA & is shareholder of BJ’s/BJ, COST, KR, WMT, TGT, Ahold/ADRNY, AMZN, ACI, DG, DLTR, CVS, RAD, WAG & UNFI. Read the Entire Article Here: https://lnkd.in/evnAYJft

Update Consumer Spending: Federal Trade Commission UFCW pension plans Kroger-Albertsons Companies-C&S Wholesale Merger. "Debt & Cash Constrained Consumers & RETAIL TRAIN WRECK: LIVE with Host Seana Smith and Anchor Brad Smith on Yahoo Finance's Morning Brief covering today's stock market. As 65% of Americans live paycheck to paycheck, debt delinquencies are at their highest since 2020, with the Fed expecting them to reach 14.3% in the next 90 days—double the pre-COVID rate of 7.1%. The economic strain extends to union workers as well. "Hundreds of thousands of union jobs have already been lost," as Burt Flickinger mentions in this segment, adding that “since President Clinton’s administration, the UFCW, International Brotherhood of Teamsters, and BCTGM/Bakers have seen a total of 400,000 jobs disappear" (Flickinger-Mellet, Strategic Resource Group - U.S. Department of Labor Study 2024). While Kroger is adding 110,000 jobs, government subsidies are driving other companies out. “Close to $10 billion in subsidies has gone to Walmart, Costco Wholesale, ALDI USA, and Target, putting unionized workers out of business.” Pension plans will “blow up” if the Kroger-Albertsons Companies Merger doesn’t go through, forcing taxpayers to step in to cover billions in underfunded plans. The result? “Union workers are getting checks for $100/month instead of the $5,000-$7,000/month they expected in retirement benefits.” The economic fallout continues to widen. Consumers are struggling to afford groceries and gas, despite strong spending in food retail. As Flickinger mentioned, “Spending is strong in retailers like Kroger, Walmart, and Costco Wholesale, but weak in home goods, furniture, electronics, and department stores.” On the other hand, “The best, sustainable retail businesses are food and consumables,” with strong performers like Kroger, Costco Wholesale, Walmart, ALDI USA, Trader Joe's, and Amazon, but many are also picking up the retail wreckage with companies like RITE AID, CVS Health, Walgreens, and dollar stores like Dollar General and Dollar Tree Stores contracting and closing key stores. Link: https://lnkd.in/e-SDt46T

Kroger-Albertsons Companies Merger Has Support from Seattle Latino Metropolitan Chamber of Commerce and Tacoma Latino Chamber of Commerce. With a business community network of more than 1,600 businesses and executives, the chamber activities have been recognized with two proclamations from the City of Seattle in 2017 and 2018, presented by Mayor Murray and Durkan. President & Founder Marcos Wanless and his leadership team support good businesses that provide strong, ongoing support for the Hispanic Community. His September 22, 2024 Opinion letter in the Tacoma News Tribune highlights Kroger as both a community builder as well as a company that benefits the Hispanic community, thus the Federal Trade Commission and Washington State Office of the Attorney General should support the merger. Marcos Wanless and the Strategic Resource Group Team agree, so Burt Flickinger spoke to him at length to find out more about what inspired his letter to the Tacoma News Tribune. Marcos told me that he views Kroger and Fred Meyer as good, competitive stores that hire Hispanics, have relevant brands for his community, and Kroger Company as a business that provides ongoing support to the Hispanic community both philanthropically and economically. Read Marcos’ Opinion Editor on behalf of both The Seattle and Tacoma Latino Chamber of Commerce here: “We’ve been following the proposed merger between Kroger and Albertsons because it’s significant for the Latino business community. I want to highlight Kroger’s ongoing support for Hispanics. Last year they gave $1 million to benefit several Hispanic organizations to solve food insecurity and provide job training that builds on their work to create equitable economic opportunity for Hispanics. They’ve also set aggressive goals for minority hiring. And they’ve added a new “Hispanic-inspired” brand of products in their stores, Mercado Brand. Kroger states they need this merger to compete and survive. With the clear growth in bulk and online grocery sales, the grocery landscape is changing. They’ve also pledged no layoffs or store closures. I think this merger deserves an opportunity; Kroger has earned it. We’ve recently launched our new Tacoma Hispanic Chamber of Commerce, there is a lot of work to do for the Hispanic community here in Tacoma. And we need more companies like Kroger supporting our efforts. Therefore we look forward to a favorable approval of Kroger’s proposed merger.” -Marcos Wanless, Tacoma Tacoma News Tribune link here: https://lnkd.in/eVDe_DsB

Kroger-Albertsons Companies MERGER UPDATE BREAKING NEWS: Gregory Meyer Financial Times September 29 article titled, “America’s largest supermarket merger hangs on the fate of its workers. Union’s opposition to Kroger’s $25bn purchase of Albertsons sparks doubts in local affiliate.” Mr. Meyer’s piece highlights the concerns of John T. Niccollai, President of UFCW union Local 464A, which represents Albertsons’ workers in parts of New York and New Jersey, who expressed his doubts over the unions’ opposition to the merger. “Kroger’s $24.6bn purchase of Albertsons is not necessarily evil.” According to Mr. Niccollai, “Wouldn’t it be in the best interest of working men and women to have a totally unionised large national employer? And that’s really what a merger of Albertsons and Kroger would bring to fruition.” Mr. Niccollai, who has served as Local 464A president since 1982 and also serves as Vice President at UFCW International, said he also endorsed UFCW International’s opposition to the merger. “We’re team players. You can’t have a union divided. So we’ve taken the position that we’re opposed to the merger,” he said. Yet in the northeast, where Albertsons but not Kroger has supermarkets, Mr. Niccollai warned blocking the deal could have unintended consequences for his members who work at Albertsons-owned Acme and Kings stores. “I am concerned that if this merger doesn’t go through, it could put those stores in jeopardy,” Niccollai said. We agree with Mr. Niccollai. His comments are well founded and echo the statements made by Vivek Sankaran in court, “It would mean thinking about assets that are not performing and making tough decisions on them; about businesses that are not performing and making tough decisions on them.” Some other local union leaders have privately expressed worries that “Kroger is the only viable union operator to buy Albertsons, and if this doesn’t go through, Albertsons is going to get bargained off in pieces and sold to non-union retail competition,” said Henry Mellet, a senior director at Strategic Resource Group, a consultancy that has union locals and retailers as clients. Niccollai said: “There’s really a dichotomy of opinions, because we have local unions that have different issues.” As Burt Flickinger has stated many times before, UFCW membership has been dramatically reduced over the past 20 years. If the merger does not happen and Albertsons sells stores or even entire chains to non-union operators (very possible), UFCW membership will plummet in already hard-hit UFCW regions across the United States. We maintain that Kroger’s acquisition of Albertsons will create a national chain to effectively compete with Walmart and Amazon et al. Contrary to what the FTC is alleges, the merger will uplift the food retail sector, help manufacturers and farmers, and bolster UFCW membership well into the future.