On Kroger’s Q2 results, Kelly Tackett, US Research Director at Planet Retail, commented:
“While many of its competitors cut back full-year guidance on the back of poor Q1 results, Kroger actually raised its outlook for the year. To say that we expect more of the same from the leading US grocer in Q2 doesn’t in itself seem newsworthy, but given the headwinds facing all grocery retailers, a 43rd consecutive gain in comparable store sales is in fact quite remarkable.
“We are particularly encouraged by signs that this traditionally slow and methodical mover has adopted a more proactive and agile approach. With competitive pressures assailing the traditional grocery channel from all sides, Kroger’s recent acquisitions are positioning it well not only to protect its market share but also to expand it in some areas.
“Planet Retail has long viewed the Harris Teeter acquisition as a smart strategic move toward Kroger’s goal of being a truly national grocery chain. In the near term, though, the ramped-up presence in the south-east also provides a route to steal further market share from Walmart.
“Additionally, the Vitacost deal shores up Kroger’s healthy-living play and its nascent e-commerce capabilities, both of which should help insulate it from Amazon’s incursions into the grocery space.”
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