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Kroger, Albertsons could turn to ad business as mega merger falls through, analysts say


Published on 2024-12-11 10:40:57 - MSN
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  • Kroger and Albertsons could turn to fast-growing and profitable advertising ventures to tackle competition and grow after a failed $25 billion merger between the two supermarket rivals, analysts said.

The proposed merger between Kroger and Albertsons, valued at $24.6 billion, has encountered significant regulatory hurdles, leading analysts to speculate on alternative strategies for the companies. With the merger facing potential collapse due to antitrust concerns, both companies are now considering enhancing their advertising businesses as a growth avenue. Kroger has already made strides in this area by acquiring companies like 84.51° and partnering with firms such as Disney and NBCUniversal for targeted advertising. Similarly, Albertsons has been expanding its digital advertising capabilities through its Albertsons Media Collective. Analysts suggest that by focusing on advertising, these retailers could leverage their extensive customer data to create new revenue streams, potentially softening the blow if the merger does not proceed. This pivot could also help them compete more effectively with other retail giants like Walmart and Amazon, who have also ventured into advertising.

Read the Full MSN Article at:
[ https://www.msn.com/en-ca/money/general/kroger-albertsons-could-turn-to-ad-business-as-mega-merger-falls-through-analysts-say/ar-AA1vFQUV ]