The news: Kroger plans to buy Albertsons in a deal that values the company at $24.6 billion, per The Wall Street Journal.
The impact on digital grocery sales: While the growth rate of digital grocery sales has slowed significantly since 2020, its share of overall sales continues to grow. Our digital grocery report expects digital will account for 9.9% of overall grocery sales this year and that share will reach 15.0% by 2026.
Not so fast: The combined company would have a market cap of nearly $48 billion.
The big takeaway: The grocery space is already heavily consolidated, making further consolidation bound to attract scrutiny, particularly at a time when food prices are already soaring.
Go further: Read more digital grocery industry insights in our US Digital Grocery Forecast 2022.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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