It’s been almost a week since Kroger announced plans to double its promise to shoppers to reduce prices at Albertsons stores if its acquisition of the chain is approved, increasing its investment from $500 million to $1 billion.
But BoiseDev, a news organization based in Albersons’ hometown of Boise, Idaho, reports that the deal isn’t as impressive as it sounds on paper. In reality, the publication said, the move would save shoppers about 4 cents a trip.
A Kroger spokesperson responded to the story without verifying or denying the claim. “We did not provide that calculation. I am not sure where it originates from,” Kroger Director of Media Relations Erin Rolfes said in an email.
The news organization, which covers Albertsons closely, used shopper foot-traffic data from analytics firm Placer.ai to estimate how much of a discount shoppers would see at the checkout.
“The math changes a bit when figuring in divested stores and a doubling of the promise—but it’s still a very modest investment in lowering prices,” the story noted.
The news organization originally reported that the proposed $500 million investment announced in 2022 would come out to about 2 cents per shopping trip.
The story also noted that Kroger’s pricing commitment will extend to its Albertsons locations if the deal goes through, while its Kroger stores will not be included in the price cuts.