Looks like Kroger may be coming to OKC if they buy out Albertson's. What do you guys think about this? Personally, I like Kroger stores, but I don't really think they're any more upscale than an Albertsons. I do agree with what one lady said in the article. I think those savings cards that Albertsons and Homeland has are a waste of time and money. Instead of spending the money to manage that system, why don't they simply lower prices?

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"Kroger makes a bid for Albertsons stores

The word on Wall Street is that Kroger has offered a takeover bid for Albertsons. The news caused both company's stocks to rise over the last few days of trading.
Also on the table are offers from drugstore chains Walgreen Co. and CVS Corp., the Wall Street Journal and New York Times reported Monday. The offers are all for more than $20s per share, which would value the deal at more than $10 billion, with the assumption of $6.5 billion of debt.

Shares of Boise, Idaho-based Albertsons gained $1.19, or 4.95 percent, to $25.25 on the New York Stock Exchange. Meanwhile, Kroger shares rose 27 cents to $20.07 on the Big Board.

Albertsons declined comment, and calls were not returned Monday by Kroger, CVS and Walgreens.

Jake Dollarhide, chief executive officer of Longbow Asset Partners in Tulsa, said a Kroger takeover for Oklahoma would just mean one big national grocery chain buying another big national grocery chain.

"You would assume the number of locations would stay the same, and with a more stable company like Kroger, the chain might actually grow," he said.

Dollarhide said Cincinnati-based Kroger is the nation's largest traditional grocer. He pointed to the company's large acquisitions in the 1990s and their large presence in Dallas as indicators that they would be a logical buyer for the Albertsons chain.

"From a strategic footprint it makes sense," he said.

The move may mean little else for the state, however.

Lorrie Griffith, editor of the Southwest and Southeast editions of grocery trade magazine the Shelby Report, said both stores are extremely similar, each operating about 2,500 stores -- Albertsons in 37 states and Kroger in 32.

"This may not mean significant changes other than different labels on products. In terms of general Kroger stores, they focus on service and one-stop shopping. Their slogan is 'right store, right price,' so they'll try to stay competitive with price," Griffith said.

But she conceded the chain still won't be able to keep the prices low overall compared with Wal-Mart, which has 50 percent of Oklahoma's market share.

Dollarhide said the grocery business is extremely competitive with margins shrinking to a low single digit year-to-year increase.

"If you can bring shoppers through the doors with weekly promotional ads to buy the milk, bread and bananas, then you can try to sell them higher margin items like meats, paper products, toys, holiday items, bakery and floral," he said. "You're probably looking at grocery stores who would like to bring shoppers into their pharmacies or their photo mats. Grocery stores don't grow rich serving the coupon clippers."

In Oklahoma, Albertsons has about 3,500 employees between 31 grocery stores and a Ponca City distribution center. Nationwide, Albertsons and subsidiaries operate about 2,500 stores in 37 states and employ approximately 240,000 associates. Its banners include Albertsons, Acme, Shaw's, Jewel-Osco, Sav-on Drugs, Osco Drug, and Star Markets, as well as Super Saver and Bristol Farms, which are operated independently.

Consumer Karen Loerwald said she could live without either Albertsons or Kroger.

"Albertsons, Kroger and other major chain stores seem to be hard set on forcing those stupid 'Frequent User Store Cards' down people's throats and you have to use them to get a lower price that is never as low as Wal-Mart, nor is it even a good value. I personally find the cards a nuisance and a waste of the company's money keeping up with them.

"My family and I recently moved here from out of state and have shopped at several stores in the area as well as where we lived. The only stores that seem to be competing with Wal-Mart that I have found are Crest, Homeland, Target and two that are not here called HEB and United.""

Kroger also owns Ralph's out here in California and the stores are virtually identical except for the name.

Ralph's are typically a little nicer than the typical grocery store and it's my preference when I have the need for main-stream groceries (instead of Trader Joe's or other specialty stores).

We also have Albertson's here but I like Ralphs much better. I think this could be a good thing for OKC.

Kroger will be good for Texans moving to Oklahoma that are accustomed to that particular gorcery chain, but what's important is that Kroger stores a just nice in general. In both presentation and interior design, Kroger keeps its reputation well. Homeland was never on par with cleanliness, and lets face it... anytime Homeland occupied a building things got downright dirty.

What Kroger carries is another important factor. I just hope they don't streamline the Oklahoma City market with basic food inventory as was the case with Homeland, Buy For Less, and in some cases Albertson's. Even Price Chopper carried less at its Oklahoma stores than in Missouri, Nebraska and Iowa.

What we need is more supermarkets with the pricing structure similar to Wal-Mart or Crest. Wal-Mart, however, has very high produce costs and Crest does not.

Albertsons and Homeland have very high prices. Kroger, I believe does as well.

Kroger owns Dillon Stores in Kansas, King Soopers/City Market in Colorado. I think they are trying to keep up with the purchasing muscle of Wal-Mart. Crest for example quit Nabisco brands because they wouldn't give the price break (Our Founder Todd told me this when I called him and asked where they kept Ritz Crackers, he knows everything).

I would much rather see H-E-B than Kroger. They can certainly capitalize on their Hispanic connections and they are nice stores --- not to mention Central Market is awesome.

Yes bring on H-E-B

Baker's is owned by Kroger and used to be here in OKC but exited this market so if they buy Albertson's this will be their return to OKC. I wonder if they will keep the stores here or exit as before.

Yes bring on H-E-B
What you said! HEB's can be great if they are "full" version! Of course, in OK, they couldn't sell wine, could they?

Actually if we are going to see any new entrant, I would rather it be Giant Eagle. Growing up in Ohio, I was always use to Kroger being the big fish in town...until the price wars started. They are still leading the market share, but Giant Eagle came into town up there about 3-4 years ago and really did a number on the prices. Their savings card actually means something, not to mention coupon matching, and you would easily walk out with $200 worth groceries for $50-60. Not to mention their gas promotion of saving 10 cents on every gallon of gas for every $50 you spend. That always added up quickly.

http://www.gianteagle.com/main/home.jsp

I hate those stupid shopping cards. If I was a paranoia-conspiracy freak (which I'm not) - I don't want some company keeping track of much cottage cheese and Ben & Jerrys I bought last month. The data mining that is possible with that information is amazing I suppose.

This from the 25-35 white male single professional in zip code 74014 (income >90K) that buys groceries twice a month - very few fresh vegetables, lots of meat, cheese, diet soda, light beer, prepared meals and frozen dinners ---hmmm, let's send him books on the Atkins or So. Beach diets and a brochure for a dating service ---HAHAHA

Let's get more ALDI's instead !!!! Home of the weird brands and cheap toys and other various non-grocery items! Just kidding those places are straight up weird.