Grocery store chain sues competitor for USD 1 billion

U.S. grocery store chain Haggen is suing fellow grocery store company Albertsons, seeking more than USD 1 billion (EUR 889.1 million) in damages in what Haggen alleges is an antitrust case.

Haggen, in a statement announcing the lawsuit, accused Albertsons of “coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor in over 130 local grocery markets in five states.” The suit also alleges Albertsons “made false representations to both Haggen and the (U.S. Federal Trade Commission) about Albertsons’ commitment to a seamless transformation of the stores into viable competitors under the Haggen banner.”

Haggen, based in the U.S. state of Washington, is referring to the December 2014 purchase of 146 Albertsons and Safeway stores, which is when Haggen argues the Albertsons campaign began. Haggen has accused Albertsons of “premeditated acts of unfair and anti-competitive conduct” designed to disrupt Haggen’s moving into new grocery markets through the store purchases.

Among other acts, Haggens accused Albertsons of issuing false price data in its competing stores, forcing Haggens to raise its own prices, illegally accessing Haggen’s customer data, and deliberately understocking stores Haggen purchased just prior to handing them over. These and other efforts, Haggen alleged in the suit, forced Haggen to close 26 of the stores it purchased.

“Albertson’s anti-competitive actions critically damaged the operations, customer service, brand goodwill and profitability of the divested stores from the outset,” the complaint alleged.

Subscribe

Want seafood news sent to your inbox?

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500
None