One of the leading grocery retailers in the U.S., The Kroger Co. (KR) plans to invest $150 million in Northern Texas over a period of 2 years. The amount infused will be allocated towards opening of stores and fuel centers, and refurbishment and expansion of existing locations. The company plans to construct 5 new outlets and expand 3 existing locations.
This strategic initiative is expected to generate over 1,700 full time and part time employment opportunities.
Of the 5 new stores, only 1 will be opened in 2014, and the remaining 4 are scheduled for 2015. Among the 3 Kroger Signature stores falling under the expansion plan, 2 are scheduled to be ready by 2014 whereas 1 is expected to complete by the final quarter of fiscal 2013 itself.
Kroger for the last 55 years has been in Dallas market operating 85 stores and 43 fuel centers.
This Ohio based supermarket and multi-department store operator, catering to 31 states is expected to announce its third-quarter fiscal 2013 earnings on Dec 5, 2013. Our proven model conclusively shows that Kroger is likely to beat the Zacks Consensus Estimate this quarter. This is because the company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 1.89% and for a stock to outperform, it needs both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3.
Other stocks in the retail supermarket industry that warrant a look include Harris Teeter Supermarkets, Inc. (HTSI), Marks & Spencer Group plc (MAKSY) and Tesco PLC (TSCDY), all holding a Zacks Rank #2 (Buy).