Kroger Co  (KR) – Get Free Report shares edged higher in pre-market trading ahead of the grocery store giant’s second quarter earnings prior to the opening bell.

Kroger, which is attempting to merge with rival Albertsons Companies  (ACI) – Get Free Report in a $24.6 billion that would combine the country’s two biggest grocery store chains, is expected to report relatively flat year-on-year earnings for its fiscal second quarter of around 91 cents per share.

Group revenues, meanwhile, are forecast to fall by less than 1% to $34.121 billion as the group continues to lose market share to Walmart  (WMT) – Get Free Report in its push to bring in value-focused shoppers into its food and grocery business.

Kroger will likely address that challenge, as well as its merger plans, when it speaks to analysts later Friday following reports that it’s prepared to sell 400 stores to C&S Wholesale Grocers for around $2 billion in order to appease concerns levied by the Federal Trade Commission and attorneys general from several U.S. states.

Kroger has pledged to invest another $1.3 billion towards upgrading Albertsons store —which include brands such ACME, Safeway and Vons— as well as another $1 billion to improve benefits and wages for the group’s employees in an effort to offset regulatory and consumer advocacy concerns.

“We are strongly opposed to this merger and urge you to stop this corporate consolidation that is draining Americans of their hard-earned wages and livelihoods,” the AGs of seven states, including Colorado, Arizona and Minnesota, wrote to FTC chairman Kna Khan last month.

Kroger shares were marked 0.7% higher in pre-market trading to indicate an opening bell price of $48.85 each. 

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