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Consolidation in Food Retailing : Prospects for Consumers & Grocery Suppliers

unprecedented consolidation and structural change through mergers, acquisitions, divestitures, internal growth, and new competitors. Since 1996, almost 3,500 supermarkets have been purchased, representing annual grocery store sales of more than $67 billion (including food and non-food sales by supermarkets, superettes, and convenience stores). Two of the largest food retailing combinations in history were announced in 1998: the merger of Albertson’s (the nation’s fourth-largest food retailer) with American Stores (the second-largest), and the acquisition of sixth-largest Fred Meyer by first-ranked Kroger Company.