In the ever-evolving world of American retail, two of the industry’s biggest players—Kroger and Albertsons—may be shifting the narrative from a halted merger to a possible future built on strategic collaboration. Sources close to both companies suggest that while the FTC’s block on the merger remains in place, dialogue has quietly resumed around joint ventures in sourcing, supply chain, and advertising.
With Susan Morris officially stepping into her role as CEO of Albertsons on 1 May 2025, there is cautious optimism that both companies could find common ground on ways to strengthen their positions in the market, not through consolidation, but through shared operational efficiencies.
A Partnership Model in the Making?
The idea now being floated is “unified buying power”—pooling their purchasing systems for national brands and possibly expanding private label reach. This model would not only deliver better value to consumers but could also place significant competitive pressure on rivals like Walmart and Costco.
A shared advertising strategy is also under review. Instead of competing on separate fronts for the same regional markets, Kroger and Albertsons could co-develop campaigns, amplify promotional messaging, and use data analytics to jointly target shopper behaviour more effectively.
Kroger’s Pivot Under New Leadership
Since the regulatory roadblocks, Kroger’s leadership has been rethinking growth not through acquisition but through innovation, digitalisation, and logistical strength. The company is investing in automated fulfilment centres, AI-driven inventory control, and last-mile delivery networks.
By working alongside Albertsons—without a legal merger—Kroger could still tap into shared economies of scale, especially on the backend. It’s a clever pivot from a direct merger strategy to a more politically neutral form of collaboration.
Albertsons: A New CEO with a Pragmatic Vision
Susan Morris, a seasoned retail executive and former COO of Albertsons, is widely respected across the industry for her hands-on approach, deep knowledge of store operations, and commitment to employees and suppliers.
Her appointment signals a strategic reset for Albertsons. With her reputation for fostering partnerships and driving localised innovation, Susan may be the ideal bridge between Kroger’s ambition and regulatory realities.
Is the Retail Industry Ready for a Non-Merger Alliance?
Retail analysts argue that “soft unification” could be the model of the future—especially in highly regulated environments. By sharing key operational functions while maintaining separate ownership, companies could stay competitive and nimble, avoid legal hurdles, and still serve the consumer with better pricing and product availability.
As we move into the second half of 2025, the US retail landscape may witness a new form of collaboration—not through mergers or acquisitions, but through adaptive partnerships that serve all stakeholders: shareholders, suppliers, and most importantly, customers.
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Great! Here’s a suggested follow-up interview outline and draft to complement the article. This can be published in International Supermarket News as a continuation of the coverage on Kroger and Albertsons’ new direction.
Exclusive Interview: How Strategic Alliances Could Redefine US Retail – ISN Reveal
Interview with Jessica Langston, Senior Retail Analyst at MarketScope Consulting
By Riad Beladi – ISN, April 2025
Following our report on the potential collaboration between Kroger and Albertsons, International Supermarket News sat down with Jessica Langston, a respected analyst with over 15 years of experience in food retail strategy, to get an insider view on how such partnerships could shape the future of the grocery landscape in the United States.
Riad Beladi: Jessica, the idea of Kroger and Albertsons working together—not merging, but aligning on key areas—is gaining attention. Is this a viable strategy?
Jessica Langston: Absolutely. We’re seeing a shift in retail where collaboration is becoming the new consolidation. By sharing their buying power, logistics, and even marketing intelligence, Kroger and Albertsons could enhance margins, respond faster to market changes, and still maintain their individual brand identities.
Riad: Susan Morris is stepping in as CEO of Albertsons on May 1. What does her leadership bring to this potential collaboration?
Jessica: Susan is known for her pragmatic leadership. She understands the operational nuts and bolts of grocery retail. Her ability to work cross-functionally and build supplier relationships makes her the perfect partner for something like this. She will bring stability and a listening ear to what both staff and stakeholders need.
Riad: Do you think this model could be replicated by other supermarket chains?
Jessica: Without a doubt. If Kroger and Albertsons prove this hybrid model works—avoiding the regulatory mess of mergers while still achieving scale—others like Ahold Delhaize or even regional players like Publix might explore similar setups. The key is alignment without full integration.
Riad: What about the suppliers? How would they be affected?
Jessica: Suppliers may feel increased pressure at first due to centralised procurement, but long-term, a more efficient supply chain benefits everyone. It can lead to better forecasts, less waste, and more consistent demand. The success will depend on how transparent and fair the process is.
Riad: Final thoughts—what should we watch for over the next six months?
Jessica: Watch for joint sourcing announcements, shared digital platforms, or a combined loyalty program. These would be early signs of the collaboration taking shape. If successful, it could change the entire game.
Riad’s Note: At ISN, we’ll be closely monitoring how Susan Morris’s leadership at Albertsons, paired with Kroger’s tech-driven strategy, could give rise to a new era in food retail