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Kroger on Strong Footing Courtesy of Digitization Efforts
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The coronavirus outbreak resulted in a paradigm shift in consumer buying behavior. People are still shopping for essential items and deferring their discretionary purchases. Further, as social distancing becomes the “new normal,” retailers have been focusing on bolstering omni-channel operations and ramping up delivery services to meet customers’ needs. Notably, The Kroger Co. (KR - Free Report) is well equipped to serve shoppers.
Impressively, this Cincinnati, OH-based company has prioritized its actions to resonate well with the prevailing crisis and burgeoning demand for necessary commodities. The company has been making prudent investments to bolster omni-channel operations, improve supply chain and increase manpower to ensure swift customer service amid such challenging times.
Driven largely by coronavirus-led demand, Kroger registered a sharp rise in sales across both brick-&-mortar stores and digital channels during first-quarter fiscal 2020. Realizing the need of the hour, the company is offering a no-contact delivery option, low-contact pickup service and ship-to-home orders. It has also waived pickup fees with no minimum purchase requirements and continued to expand contactless payment solutions like “Kroger Pay.” Also, the company implemented pickup-only location in Cincinnati.
We note that digital sales soared 92% in the first quarter, while pickup or delivery reached 97% of Kroger households (2,000 pickup locations and 2,400 delivery locations). In the first three weeks of the second quarter, digital sales were up in triple digits.
Clearly, Kroger, which operates in the thin-margin grocery industry, has been making every effort to strengthen position not only with respect to products but also in terms of the way consumers prefer shopping.
Its acquisition of Home Chef, the U.S. meal-kit company, and partnership with British robotics company, Ocado, in 2018 are noteworthy. The company is aggressively working toward more convenient grocery delivery options. In this regard, the company has started utilizing Nuro’s fully autonomous, driverless vehicles for grocery delivery services. The company also started accepting Supplemental Nutrition Assistance Program (SNAP) benefits for pickup orders.
Recently, Home Chef recently collaborated with Impossible Foods. Adding more versatility to Home Chef’s offering, this alliance allows meat lovers to swap the traditional animal-based proteins for the plant-based Impossible Burger.
Bottom Line
Kroger is leaving no stone unturned to improve top-line performance and expand customer base. It is directing resources toward digital platforms and augmenting supply chain. Shares of this Zacks Rank #1 (Strong Buy) have rallied 20.4% in the past six months compared with the industry’s growth of 13.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks Looking Hot
Big Lots (BIG - Free Report) , a Zacks Rank #1 stock, has a trailing four-quarter earnings surprise of 62.2%, on average.
Sprouts Farmers Market (SFM - Free Report) has a long-term earnings growth rate of 9.2%. Currently, it sports a Zacks Rank #1.
SpartanNash Company (SPTN - Free Report) , a Zacks Rank #1 stock, has a trailing four-quarter earnings surprise of 17.1%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Kroger on Strong Footing Courtesy of Digitization Efforts
The coronavirus outbreak resulted in a paradigm shift in consumer buying behavior. People are still shopping for essential items and deferring their discretionary purchases. Further, as social distancing becomes the “new normal,” retailers have been focusing on bolstering omni-channel operations and ramping up delivery services to meet customers’ needs. Notably, The Kroger Co. (KR - Free Report) is well equipped to serve shoppers.
Impressively, this Cincinnati, OH-based company has prioritized its actions to resonate well with the prevailing crisis and burgeoning demand for necessary commodities. The company has been making prudent investments to bolster omni-channel operations, improve supply chain and increase manpower to ensure swift customer service amid such challenging times.
Driven largely by coronavirus-led demand, Kroger registered a sharp rise in sales across both brick-&-mortar stores and digital channels during first-quarter fiscal 2020. Realizing the need of the hour, the company is offering a no-contact delivery option, low-contact pickup service and ship-to-home orders. It has also waived pickup fees with no minimum purchase requirements and continued to expand contactless payment solutions like “Kroger Pay.” Also, the company implemented pickup-only location in Cincinnati.
We note that digital sales soared 92% in the first quarter, while pickup or delivery reached 97% of Kroger households (2,000 pickup locations and 2,400 delivery locations). In the first three weeks of the second quarter, digital sales were up in triple digits.
Clearly, Kroger, which operates in the thin-margin grocery industry, has been making every effort to strengthen position not only with respect to products but also in terms of the way consumers prefer shopping.
Its acquisition of Home Chef, the U.S. meal-kit company, and partnership with British robotics company, Ocado, in 2018 are noteworthy. The company is aggressively working toward more convenient grocery delivery options. In this regard, the company has started utilizing Nuro’s fully autonomous, driverless vehicles for grocery delivery services. The company also started accepting Supplemental Nutrition Assistance Program (SNAP) benefits for pickup orders.
Recently, Home Chef recently collaborated with Impossible Foods. Adding more versatility to Home Chef’s offering, this alliance allows meat lovers to swap the traditional animal-based proteins for the plant-based Impossible Burger.
Bottom Line
Kroger is leaving no stone unturned to improve top-line performance and expand customer base. It is directing resources toward digital platforms and augmenting supply chain. Shares of this Zacks Rank #1 (Strong Buy) have rallied 20.4% in the past six months compared with the industry’s growth of 13.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks Looking Hot
Big Lots (BIG - Free Report) , a Zacks Rank #1 stock, has a trailing four-quarter earnings surprise of 62.2%, on average.
Sprouts Farmers Market (SFM - Free Report) has a long-term earnings growth rate of 9.2%. Currently, it sports a Zacks Rank #1.
SpartanNash Company (SPTN - Free Report) , a Zacks Rank #1 stock, has a trailing four-quarter earnings surprise of 17.1%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>