Touch the Soil News #970 (Feature photo – Wall Street – CCA SA 3.0 Unported)
While competition has been a hallmark principal of economics, it can drive prices down to a point where choice and jobs can potentially take a beating. Rumors have just surfaced that Kroger Foods and Target may be flirting with a merger. The reason is to cut costs in the heat of an overly competitive landscape. Cutting costs often means backwashing on suppliers and employees.
Target, which is 88 percent owned by institutional investors is valued by the market at around $37 billion dollars. Target has over 1,800 locations and around 340,000 employees.
Kroger, which is 80 percent owned by institutional investors is valued by the market at around $21 billion. Kroger has close to 2,800 locations and around 443,000 employees.
We featured a picture of Wall Street in that the largest shareholders of Target are similar to the largest shareholders of Kroger – Wall Street Institutional Investors. What’s going on?