By Jake Bailey | President | UFCW, Local 1473
As an 80’s baby, I remember a time when small, family-run grocery stores, local butcher shops, bakeries, and small-town convenience stores thrived. Many of us had family members who built long-term careers in these businesses. Back then, these local shops were at the heart of our communities.
The 80s marked a turning point, and we started to witness the widening gap between the middle class and corporate wealth. Companies began targeting wages, cutting pensions, introducing co shares on health insurance, and gradually transforming what were once stable and long-term careers into temporary, part-time, college, or seasonal jobs. In Wisconsin, we saw mom-and-pop stores sell out to larger retailers like Piggly Wiggly, IGA, and Sentry. This consolidation brought new departments—bakery sections, full-service meat counters, and ready-to-eat meals—that made life more convenient for the middle class. However, it also brought in rising prices, while wages and benefits stagnated.
Soon after, even larger retailers like Walmart, Kroger, Target, and Meijer absorbed these midsize chains, and we watched as the Federal Trade Commission (FTC) and local governments stand by and watch it happen. With this new phase of consolidation came even more departments—dry goods, auto parts, hair salons, banking services—all under one roof. While it is hard to argue with the convenience of a one-stop shop, the consolidation also resulted in the loss of jobs and reduced competition.
Fast forward to 2024, and consolidation has taken a new form. Online shopping has made it possible to order groceries, dry goods, auto parts, and even conduct banking from the comfort of home. But when you look at the major employers today, Amazon, Walmart, Walgreens, Kroger, do we still see these employers as long-term carriers? Not really. Many of these workers are juggling two jobs or working part-time with limited benefits. The smaller grocers have disappeared, competition has decreased, and we’re left relying on a handful of massive retailers to prioritize middle-class interests over corporate profits.
In Wisconsin, we only need to look at Kwik Trip as an example. What began as a gas station and convenience store has now expanded into groceries, fast food, large-scale bakeries, milk production, and bottling plants. Kwik Trip is the most profitable gas station chain in Wisconsin, but its unchecked growth is pushing out once-dominant companies like McDonald’s, Burger King, and even local dairy and bakery businesses. Small, local restaurants, gas stations, and coffee shops are closing their doors, leaving Kwik Trip with the power to control prices due to the lack of competition. Convenience may outweigh competition now, but at what long-term cost?
Will we remember any other gas station in the future, or will it all be Kwik Trip?
Right now, the FTC is considering the Kroger-Albertsons mega-merger, which would make them the largest grocer in the country. They would own processing plants, food production facilities, gas stations, jewelry stores, and dry goods, all while holding an unchecked share of the market. This means fewer choices, fewer jobs, and fewer places for farmers to sell their livestock or crops.
Consolidation was never about benefiting the middle class; it has always served corporate wealth. We once had a thriving job market with pensions, healthcare, and a work-life balance. We also had multiple buyers for our crops and livestock, which gave us leverage. Today, without competition, we’re at risk of selling our labor, crops, and livestock to the lowest bidder while paying top dollar for finished goods. Consolidation only works when there’s a balance, but right now, that balance is missing.
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