Kroger (KR), Nuro Extend Deal to Expedite Grocery Delivery
The Kroger Co. KR is making concerted efforts to ease deliveries of fresh grocery in the wake of the rising omicron uncertainties. Management is equally focused on improving product quality and expanding digital capabilities.
Progressing on such lines, Kroger extended its partnership with Nuro, an autonomous vehicle company, to offer fresh groceries via all-electric, autonomous vehicles. This collaboration will help KR enrich customers’ experience with the latter’s third-generation autonomous delivery vehicle. This is likely to enhance KR’s digital offerings in Houston.
Grocery deliveries via autonomous vehicles have been a popular e-commerce option for a while, providing a seamless customer experience, irrespective of the basket size. Through the new partnership expansion, guests can avail quality and fresh food at super values. Hence, this collaboration is likely to boost Kroger’s sales and expand its market share.
Kroger remains committed to making innovations and expanding this grocery delivery to more shoppers. Its partnership with Nuro dates back to 2018, when both companies teamed up to deliver grocery by autonomous vehicles.
Kroger has been boosting “Our Brands” portfolio for a while with a new product menu. KR’s Customer 1st strategy enriches consumers’ shopping experience and convinces them of returning to the store.
This Cincinnati, OH-based player is continuously driving its market share with endeavors, such as expansion of plant-based products, digital coupons, order online pick up in-store capabilities and smart shopping lists. Management is on track to double its digital business and profitability by the end of 2023.
In addition, Kroger is consistently expanding its customer fulfillment centers (CFCs) to new geographies for ensuring efficient deliveries amid a dynamic retail landscape. Management remains committed to expand in California, Dallas, TX, Forest Park, GA (Atlanta), Frederick, MD, Phoenix, AZ, Pleasant Prairie, WI, Romulus, MI (Detroit), South Florida, the Northeast, Pacific Northwest and the West.
The currently Zacks Rank #3 (Hold) player’s shares have increased 41.9% over the past year compared with the industry’s 5.6% growth.
Hot Stocks to Consider
Some better-ranked stocks are Sanderson Farms SAFM, Costco COST and Albertsons ACI.
Sanderson Farms, the producer and distributor of frozen chicken products, presently flaunts a Zacks Rank #1 (Strong Buy). SAFM has a trailing four-quarter earnings surprise of 496.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sanderson Farms’ fiscal 2022 sales and earnings per share (EPS) suggests growth of 1% and 29.5%, respectively, from the corresponding year-ago levels. SAFM has an expected EPS growth rate of 4.9% for three-five years.
Costco, a general merchandise retailer, has a Zacks Rank #2 (Buy) at present. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
The Zacks Consensus Estimate for Costco’s fiscal 2022 sales and EPS suggests growth of 7.6% and 9.5%, respectively, from the corresponding year-ago reported figures. COST has an expected EPS growth rate of 8.8% for three-five years.
Albertsons, a grocery retailer, carries a Zacks Rank of 2 at present. ACI’s bottom line outperformed the Zacks Consensus Estimate in all the trailing four quarters, the average being 31.8%.
The Zacks Consensus Estimate for Albertsons’ current financial year sales suggests growth of 2.3% from the corresponding year-ago reported figure. ACI has an expected EPS growth rate of 8% for three-five years.
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