Friday Payday: Colorado shows its muscles as Kroger-Albertsons deal hits snag

Since Kroger and Albertsons announced plans to merge into one supermarket giant nearly two years ago, the companies’ ability to navigate the complicated transaction through federal regulators has stood out as perhaps their biggest challenge. But the announcement Thursday by Colorado Attorney General Phil Weiser that he has obtained a court order that puts the proposed merger on hold until at least early October is a reminder that downstream actions aimed at blocking the grocery store merger pose just as much of an obstacle to Kroger and Albertsons as the Federal Trade Commission.

Kroger and Albertsons have been preparing for months to persuade a federal judge to reject the FTC’s February request for an injunction blocking their merger. But even if the retailers avoid an injunction at a hearing scheduled to begin in late August, there’s also the very real possibility that a state judge in Denver will have the final word on the deal.

Kroger and Albertsons’ agreement not to close the merger until a Colorado court rules on the state attorney general’s request for an injunction to permanently block the merger underscores the power a single state has over the fate of a nationwide deal.

Significantly, neither Colorado nor Washington state (which also took legal action to stop the merger) were among the states that joined the FTC’s lawsuit against Kroger and Albertsons.

Kroger and Albertsons have focused their merger efforts to defuse opposition from the Biden administration. Now that the Colorado court is in the spotlight, will that strategy still matter?

In case you missed it

California Supreme Court rules on app-based temp workers

The state’s highest court on Thursday upheld a law that allows companies like Uber, DoorDash and Lyft to treat their delivery drivers as independent contractors rather than employees. The justices unanimously ruled to support Proposition 22, which nearly 60% of California voters approved in 2020 and which affects more than 1.4 million temporary workers in California, according to The Orange Country Register.

Instacart general counsel Morgan Fong called the court ruling “a landmark victory for gig workers across the state… (that) preserves access to the flexible earning opportunities they desire and important Prop 22 benefits.”

Save A Lot adds another delivery partner

The discount retailer has partnered with DoorDash to deliver groceries on demand, DoorDash announced earlier this week. More than 400 Save A Lot stores are active on DoorDash, and participating stores will support SNAP/EBT payments on DoorDash starting later this year.

Save A Lot announced a delivery partnership with Uber Eats last month. The discount grocery store is also available on Instacart.

Another new retail media platform in stores

CoolerX, formerly known as Cooler Screens, announced Monday a self-service platform for retailers to plan and execute in-store media campaigns. The AI ​​capabilities of the system allow retailers to “improve conversion rates, increase campaign effectiveness, and optimize desired outcomes while delivering a unified, enhanced digital consumer experience across the store,” the company said.

Number of the week: 41.4 million

That’s the number of loyalty members Albertsons reported in its first-quarter earnings results. The grocery company’s loyalty member base grew 15% year over year in the quarter, in which Albertsons announced it had streamlined its loyalty program to simplify the way members can earn and redeem points.

What’s next?

Profits at Sprouts Farmers Market

The grocery chain is scheduled to report second-quarter results after the stock market closes on Monday.

Impulse find

Remember the Trader Joe’s mini bags that flew off the shelves? Well, get ready to add a mini cooler to your TJ’s bag collection.

Trader Joe’s recently restocked its “wildly popular” Mini Insulated Tote Bags, but is warning customers that the supplies won’t be enough, according to People magazine.

Social media shows the lengths customers will go to get their hands on the latest Trader Joe’s bag, with videos showing lines forming outside stores and customers waiting for hours to get their hands on one.

At some Trader Joe’s locations, employees are being sent out to hand out bags to customers instead of displaying them in stores. One TikTok user wrote that having employees standing by to hand out mini cooler bags to customers has cut down on the number of people “running around for them like animals.”

@miyanoelle that was CRAZY!!! Trader Joe’s is that girl????????? #traderjoes #traderjoeshaul #coolerbag #traderjoescoolerbags #lunchbox #traderjoesnewitems #traderjoesmusthaves ♬ If You Don’t Want My Love – Jalen Ngonda