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Kroger Looks Firm, Efforts in Grocery Space Commendable
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The Kroger Co. (KR - Free Report) has been steadily creating a niche in the burgeoning grocery business to counter the threat emerging from other prominent players such as Amazon (AMZN - Free Report) , Walmart (WMT - Free Report) and Target (TGT - Free Report) . The company has been trying to exploit every nook and cranny to provide consumers a seamless shopping experience and convenience. From speedy deliveries to payment systems and from selling grocery to offering meal-kits, this supermarket chain is leaving no stone unturned.
The company’s commendable efforts in this direction have helped it win investors’ confidence. Notably, in the past three months shares of this Zacks Rank #2 (Buy) have increased 15.7% comfortably outperforming the industry that advanced roughly 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger is trying all means to overcome competition in the grocery space, which is undergoing a fundamental change with technology playing a key role and focus shifting to online shopping. The company has taken stock of the situation, and is introducing digital coupons, order online pick up in store and smart shopping lists.
The company’s latest deal with Nuro — the maker of driverless road vehicle — to deliver groceries at customers’ door steps using autonomous vehicles is just another initiative to take the fight to its peers. Customers via Kroger's ClickList ordering system and Nuro's app can place same-day delivery orders.
Apart from this, the company’s deal with the Ocado, an online grocery delivery company, along with the acquisition of Home Chef, a meal kit provider, are definitely good moves to stay abreast in the race.
Kroger’s partnership with Ocado is in the right direction to overcome competition. Both the companies are likely to develop three automated warehouse facilities this year and have plans to take the count to 20 in the first three years. The alliance under discussion is part of the company’s “Restock Kroger” program which is gaining traction.
Kroger commenced “We Are Local” campaign; new restaurant concept, Kitchen 1883; and added product lines under “Our Brands”. The company is going to launch a new apparel brand, Dip, this fall across America in more than 300 Fred Meyer and Kroger Marketplace stores.
As part of the “Restock Kroger” program management offloaded convenience stores to focus on its core operations and expects to generate $400 million in incremental operating margin by 2020 and more than $4 billion of free cash flow (or $6.5 billion before dividends) over the next three years.
Certainly, Kroger is trying all means to stay afloat and attain incremental revenues. We believe that these strategies are likely to bolster the company’s performance and drive the stock further.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Kroger Looks Firm, Efforts in Grocery Space Commendable
The Kroger Co. (KR - Free Report) has been steadily creating a niche in the burgeoning grocery business to counter the threat emerging from other prominent players such as Amazon (AMZN - Free Report) , Walmart (WMT - Free Report) and Target (TGT - Free Report) . The company has been trying to exploit every nook and cranny to provide consumers a seamless shopping experience and convenience. From speedy deliveries to payment systems and from selling grocery to offering meal-kits, this supermarket chain is leaving no stone unturned.
The company’s commendable efforts in this direction have helped it win investors’ confidence. Notably, in the past three months shares of this Zacks Rank #2 (Buy) have increased 15.7% comfortably outperforming the industry that advanced roughly 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger is trying all means to overcome competition in the grocery space, which is undergoing a fundamental change with technology playing a key role and focus shifting to online shopping. The company has taken stock of the situation, and is introducing digital coupons, order online pick up in store and smart shopping lists.
The Kroger Co. Price and Consensus
The Kroger Co. Price and Consensus | The Kroger Co. Quote
The company’s latest deal with Nuro — the maker of driverless road vehicle — to deliver groceries at customers’ door steps using autonomous vehicles is just another initiative to take the fight to its peers. Customers via Kroger's ClickList ordering system and Nuro's app can place same-day delivery orders.
Apart from this, the company’s deal with the Ocado, an online grocery delivery company, along with the acquisition of Home Chef, a meal kit provider, are definitely good moves to stay abreast in the race.
Kroger’s partnership with Ocado is in the right direction to overcome competition. Both the companies are likely to develop three automated warehouse facilities this year and have plans to take the count to 20 in the first three years. The alliance under discussion is part of the company’s “Restock Kroger” program which is gaining traction.
Kroger commenced “We Are Local” campaign; new restaurant concept, Kitchen 1883; and added product lines under “Our Brands”. The company is going to launch a new apparel brand, Dip, this fall across America in more than 300 Fred Meyer and Kroger Marketplace stores.
As part of the “Restock Kroger” program management offloaded convenience stores to focus on its core operations and expects to generate $400 million in incremental operating margin by 2020 and more than $4 billion of free cash flow (or $6.5 billion before dividends) over the next three years.
Certainly, Kroger is trying all means to stay afloat and attain incremental revenues. We believe that these strategies are likely to bolster the company’s performance and drive the stock further.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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