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Kroger (KR) to Enhance Store Shelf Space for Local Products

The Kroger Co. KR recently announced that it will increase the number of local products available to its customers post the completion of its planned merger with Albertsons Companies. The merger transaction, which is likely to close in early 2024, will help the combined entity to firm its position in the competitive grocery space.

Kroger’s shares inched up 0.2% yesterday, eventually closing the trading session at $46.18.

Inside the Headlines

Post completion of the merger, the combined entity will house an additional 10% of local products in its stores, which amounts to a minimum of 30 new local products in each store. The company expects this initiative to augment its Fresh for Everyone brand strategy, in which local farmers, bakers and producers form an integral part.

Kroger collaborates with local producers to ensure the availability of fresh products in its stores for a longer period by keeping the distance between the farm and the store short. Several of the company’s stores have shelf space designed for local products, with special signages associated with particular regions. These initiatives will enable Kroger to offer the freshest seasonal items to its customers and will provide significant scope for local producers to grow their businesses.

Kroger’s Strategic Endeavors

Kroger has successfully expanded its market share through several strategic initiatives, including "Leading with Fresh" and "Accelerating with Digital." As part of its business strategies, the company resorted to various measures like offering plant-based products, digital coupons and online order pickup.

Kroger has introduced new products under its "Our Brands" portfolio. The company also launched "Boost by Kroger," an annual membership program that provides customers with free delivery and additional fuel points. Kroger's emphasis on margin-rich alternative profit businesses contributes to its positive outlook.

Zacks Investment Research
Zacks Investment Research


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The Zacks Rank #3 (Hold) company’s shares have gained by 0.2% compared with the 4.3% growth recorded by the industry in the past three months.

Stocks in the Limelight

Here we have highlighted three top-ranked stocks, namely Grocery Outlet GO, Ross Stores ROST and Walmart WMT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Grocery Outlet is an extreme value retailer of quality, name-brand consumables and fresh products. The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 11.2% and 4.9%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 14.3%, on average.

Ross Stores operates off-price retail apparel and home fashion stores. The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and earnings indicates growth of 8.1% and 19.4%, respectively, from the year-ago reported numbers. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.

Walmart operates a chain of hypermarkets, discount department stores and grocery stores. The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings implies growth of 9.2% and 2.2%, respectively, from the year-ago reported numbers. WMT has a trailing four-quarter earnings surprise of 11.6%, on average.

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Walmart Inc. (WMT) : Free Stock Analysis Report

The Kroger Co. (KR) : Free Stock Analysis Report

Ross Stores, Inc. (ROST) : Free Stock Analysis Report

Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report

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Zacks Investment Research