Kroger, Albertsons could turn to ad business as deal termination looms, analysts say

Business and Finance Business and Finance

Wed, December 11, 2024

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[ Wed, Dec 11th 2024 ] - Reuters

Kroger, Albertsons could turn to ad business as deal termination looms, analysts say

^{Published on 2024-12-11 10:20:47 - Reuters}

After a federal court blocked the $25 billion Kroger -Albertsons merger, the two supermarket rivals could turn to fast-growing and profitable advertising ventures to tackle competition and grow, analysts said.

The article from Reuters discusses the potential implications of the termination of the proposed merger between Kroger and Albertsons, which has been under scrutiny by U.S. regulators due to antitrust concerns. Analysts suggest that if the merger does not proceed, both companies might pivot towards enhancing their advertising businesses. Kroger has already been expanding its retail media network, Kroger Precision Marketing, which has shown significant growth. Similarly, Albertsons has its own advertising arm, Albertsons Media Collective. The termination of the merger could lead to increased competition in the retail media sector, with both companies potentially investing more in digital advertising to capture market share. This shift is seen as a strategic move to diversify revenue streams beyond traditional grocery sales, especially as the deadline for the merger decision approaches.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/retail-consumer/kroger-albertsons-could-turn-ad-business-deal-termination-looms-analysts-say-2024-12-11/ ]

N@N

Kroger, Albertsons could turn to ad business as deal termination looms, analysts say