|Bid||0.00 x 1000|
|Ask||0.00 x 28000|
|Day's Range||28.16 - 28.74|
|52 Week Range||22.85 - 32.74|
|Beta (3Y Monthly)||0.81|
|PE Ratio (TTM)||6.57|
|Earnings Date||Mar 7, 2019|
|Forward Dividend & Yield||0.56 (1.97%)|
|1y Target Est||31.17|
Kroger Co. CEO Rodney McMullen made some fearless forecasts when he gave a keynote presentation at the world’s largest retail conference.
CINCINNATI, Jan. 15, 2019 /PRNewswire/ -- The Kroger Co. (KR) Chairman and CEO Rodney McMullen provided his outlook on the future of retail at the NRF 2019: Retail's Big Show in New York City during a dynamic keynote presentation themed Restocking the future: Kroger's insatiable appetite to play and win the long game. CNBC "Squawk on the Street" and "Closing Bell" Anchor Sara Eisen moderated the 30-minute conversation on Sunday. Here are Mr. McMullen's five predictions for the future of retail.
# Kroger Co ### NYSE:KR View full report here! ## Summary * Perception of the company's creditworthiness is neutral * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is low for KR with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $12.43 billion over the last one-month into ETFs that hold KR are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap | Neutral The current level displays a neutral indicator. KR credit default swap spreads are decreasing, indicating some improvement in the market's perception of the company's credit worthiness. Additionally, they are within the middle of the range set over the last three years. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The ban could increase emissions because it costs more to transport paper bags than plastic ones, they say.
Kroger Co. has teamed up with a tech company to develop a software system to handle its point-of-sale transaction and data-gathering needs.
Kroger Co. CEO Rodney McMullen said the company foresaw Amazon.com Inc. getting into the grocery store business, prompting it to acquire North Carolina-based Harris Teeter Supermarkets five years ago.
When Amazon.com (NASDAQ:AMZN) announced in 2017 that it would pay $13.7 billion to buy Whole Foods, my reaction was that, for another $10 billion, AMZN could have bought all the shares of Kroger (NYSE:KR) stock. Kroger, at that time, held about 10% of the U.S. grocery market, against less than 2% for Whole Foods. The big dog on that street was Walmart (NYSE:WMT), which had a 26% share of the sector. The market cap of KR stock this morning was $22.73 billion, barely one-sixth its fiscal 2018 sales. The market cap of Walmart stock, on the other hand, is equal to more than half of the company's sales. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks the Smart Money Is Piling Into Since AMZN bought Whole Foods, Kroger has been fighting Whole Foods (and by extension Amazon) with every fiber of its being, using a project KR calls "Restock Kroger." Recently, as part of that initiative, KR made a deal with Microsoft (NASDAQ:MSFT) to incorporate technology into two of its stores and make them more like AMZN's Amazon Go outlets. According to The Verge, the stores developed by Kroger and MSFT "are filled with digital shelf labels and image recognition cameras, and aim to create a retail environment that's easier for both customers and retail employees to navigate." But the whole story of KR stock is a little more complicated. ### Retail Is Complex A grocery store isn't just where food is sold. It's also a place to which food is supplied. The key to winning isn't just getting people to come in and buy the merchandise. Supplying stores at the lowest possible prices and keeping inventory losses to a minimum are also key parts of the business. Kroger has made a number of deals to boost its performance in those areas. It has become the U.S. licensee for Ocado, a British company that aims to make profitable online sales through automated warehouses. It also bought Home Chef, a meal-kit company. Warehouses like those designed by Ocado can break bulk efficiently and centrally. Meal kits like those of Home Chef reduce waste by sending people only what they need to cook a meal. Not all the competition in this space is taking place on the sales floor. ### The Macy's Problem The real problem for Kroger and owners of KR stock remains that no one knows what Kroger is. As I have written many times, Kroger is Mariano's in Chicago. It's Harris Teeter in North Carolina, and Ralph's in California. It's King Soopers in Colorado and Fred Meyer in Oregon. All these retail chains operate independently, as we learned when Kroger closed its Kroger-branded operations in North Carolina, whose workers were unionized, and replaced them with Harris Teeter stores, whose employees are not in unions. As a result, even some owners of KR stock may not know just how big Kroger is. It had sales of $122 billion in its last fiscal year and should come close to surpassing that total when it reports its Q4 results in March. Kroger easily covers the 14-cent quarterly dividend paid by KR stock. which currently has a dividend yield of almost 2% KR has the same problem that Federated Department Stores faced in the last century. Federated finally chose Macy's (NYSE:M) as its brand, and as recently as 2015, Macy's was doing well, until the performance of shopping malls tumbled. Kroger might do well to remember this history and consolidate itself under one brand name, rather than doing side deals like selling its convenience stores, which it did last year for $2.15 billion. ### The Bottom Line on KR Stock If Kroger had a single identity, its deals with MSFT, Ocado and Home Chef would have had much more of an impact on KR stock. But that's one big change that looks unlikely to happen, which is why KR stock is selling for 31% less than it did in late 2015, against a 26% gain by the S&P 500. KR stock has held up well in the current volatile market, and it's risen over the last six months. But KR stock is still a defensive play, appealing primarily to risk-off investors. That is sad because KR stock could be so much more. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT and AMZN. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Kroger Stock Could Be So Much More appeared first on InvestorPlace.
On Jan. 7, Kroger (NYSE:KR) and Microsoft (NASDAQ:MSFT) announced a partnership to build the grocery stores of the future. A press release was posted on Microsoft's website: "Together, we will redefine the shopping experience for millions of customers at both Kroger and other retailers around the world, setting a new standard for innovation in the industry," said Microsoft CEO Satya Nadella. Microsoft stock closed at $102.06 that day, up 0.41%; KR stock gained 27 cents (0.97%), closing at $27.92. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Two high-tech stores will open. One will open in Redmond, Washington, near Microsoft's headquarters. The other will be in Monroe, Ohio, near Kroger's hometown of Cincinnati. These stores will be equipped with digital shelving technology, personalized ads, video analytics and other technologies. * 10 A-Rated Stocks the Smart Money Is Piling Into Some of these technologies will be displayed on Jan. 13 at "NRF 2019: Retail's Big Show", a trade show hosted by the National Retail Federation. The deal should boost Kroger and Microsoft stock by enabling both companies to compete against Amazon (NASDAQ:AMZN). This is true as upgrading its technology will make Kroger more competitive against Amazon. Amazon has the grocery sector in its crosshairs, buying Whole Foods in 2017. Amazon opened its high-tech, automated grocery store, Amazon Go, to the public last year. Bloomberg reported in September that Amazon was considering opening 3,000 such stores by 2021. This could mean trouble for existing grocers such as KR. Kroger could also earn additional revenue from licensing out this technology to other grocery chains. The technology will be powered by MSFT's Azure (its cloud computing service). Microsoft Azure currently ranks second place in infrastructure-as-a-service (IaaS) cloud computing revenue. Azure is behind Amazon Web Services (AWS), and needs more revenue to catch up. Increased cloud computing revenue will boost Microsoft stock. ### Impact on Kroger Stock Retailers like Kroger are worried about competition from Amazon. They've seen what the e-commerce company has done to brick-and-mortar stores like Borders and Circuit City. Now, with next-generation Amazon Go technology, Amazon is threatening grocery stores. Kroger and other grocery stores will have to respond. With Amazon Go, shoppers do not take out cash or swipe a card when they check out. There is no checkout; you don't even need to wait in line. You only take your phone out once, to scan a QR code to identify yourself; this allows you to enter the store. Video cameras and sensors keep track of what you put in your bag. The cost is deducted from your Amazon account and you can just walk out. Shoppers don't like waiting in line, and this gives Amazon Go an edge over other grocery stores like Kroger. Amazon will also save money, since it won't need to pay cashiers. To compete against Amazon Go, Kroger will need to adopt similar technology. Kroger could also earn money by selling advertising space on its new digital shelves. Additionally, KR plans to license out this technology, which it calls "retail as a service", to other grocery stores. This could bring in additional revenue, which would boost KR stock. ### Impact on MSFT Stock Like Kroger, MSFT is also competing against Amazon, but in a different industry: cloud computing. According to Gartner, Amazon accounted for 51.8% of global IaaS cloud computing revenue in 2017. Microsoft was second place, with a 13.3% market share. However, Amazon's status as a retailer could discourage other stores from doing business with Amazon Web Services. This presents an opportunity for MSFT, as more cloud computing business could boost Microsoft stock. * 7 Pharmaceutical Stocks That Just Raised Prices This Year Kroger's chief information officer told CNBC in 2017 that the company would be avoiding AWS "for obvious reasons." Kroger doesn't want to fund a potential competitor. Instead, Kroger went with Amazon's rivals, MSFT and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Kroger isn't the only retailer shunning Amazon Web Services. Walmart (NYSE:WMT) told technology companies it works with to stop using AWS in 2017. In July, Walmart announced a partnership with MSFT. Walmart named Microsoft its "preferred and strategic cloud provider." Microsoft stock will benefit from this deal since KR's technology is built on MSFT Azure. And if Kroger can sell this to other grocery stores, MSFT will earn additional revenue. As of this writing, Lucas Hahn did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Will MSFT's Partnership With Kroger Drive Microsoft Stock Higher? appeared first on InvestorPlace.
The Lakeland-based grocer this week rolled out the quarts in standard flavors like Moose Tracks and strawberry, alongside limited edition flavors lemon sugar cookie, sticky bun and hula hula Macadamia (perfectly packaged for millennials, as it happens, in a millennial pink container with monstera leaves). Publix spokesman Brian West said Friday that the quarts began arriving in stores mid-week last week, and that they will be available in all stores. "Customers can try a variety of flavors without the commitment of buying an entire half gallon," West wrote in an email. "Our limited-edition ice creams include eight different flavors that will rotate throughout the year.” But the quarts' sweet, small nature belies their significance for Publix.
Target Shone during the Holidays—Why Didn't Its Stock? (Continued from Prior Part) ## TGT is likely to sustain its momentum in 2019 Target Corporation (TGT) reported strong financials in the first three quarters of 2018, and we expect it to end 2018 on a strong note and post stellar comps and EPS growth. Target is also expected to sustain the growth momentum in its sales and earnings in 2019 led by the expansion of its digital offerings. However, its growth rate is expected to slow as it faces tough YoY (year-over-year) comps. Target’s top line is expected to increase led by growth in its comps. The company’s expansion of its fulfillment options, including delivery through Shipt, Drive Up, and Order Pickup, is expected to drive its traffic. Meanwhile, store remodelings and the opening of new stores are likely to support its comps growth, as these stores generate higher sales and productivity. Target’s focus on merchandising and exclusive product launches should also drive its sales. Target managed to stabilize its bottom line in the first three quarters of 2018. A considerable fall in its effective tax rate, lower interest expenses, and share repurchases supported Target’s bottom line. We expect Target’s bottom line to continue to increase in 2019 driven by improved comps and an anticipated fall in its per-unit digital fulfillment costs. Wall Street expects Target’s top line to increase 3.1% in 2019. Meanwhile, its bottom line is expected to increase 4%. ## Stock performance in 2019 Retail stocks had wiped out most of their gains as of the end of 2018. However, these retailers started 2019 on a positive note. Target stock is up 3.3% so far this year. Meanwhile, Costco (COST), Kroger (KR), and Walmart (WMT) stocks have risen 3.4%, 3.6%, and 1.9%, respectively. Continue to Next Part Browse this series on Market Realist: * Part 1 - Target Shone during the Holidays—Why Didn’t Its Stock? * Part 3 - Why Target’s Digital Sales Could Grow at a Healthy Rate * Part 4 - What’s the Expected Upside in Target Stock?
The German supermarket chain has signed a construction deal to build a 39,300-square-foot store at The Shoppes at Sedgefield Crossing in Greensboro.
Kroger Co. has apologized after some of its employees racially profiled a group of teenagers by wrongfully accusing them of shoplifting.
Walmart Inc. (NYSE: WMT) will deploy autonomous vehicles to deliver groceries for customers, according to Tom Ward, senior vice president of digital operations for the retail giant. Autonomous vehicle company Udelv is providing the technology to make the pilot program possible. As the world's largest retailer, Walmart is continuously experimenting with new technology and services to enhance the customer experience.
U.S. supermarket chain Kroger Co said on Tuesday it plans to raise $1.2 billion through a debt offering, according to a U.S. regulatory filing https://bit.ly/2QxmZAN. The company said it would offer two ...
Kroger (KR) has recently partnered with Microsoft (MSFT) to challenge Amazon’s (AMZN) footprint in the digital grocery space. Kroger and Microsoft’s cloud arm Azure have come together to set up two concept stores that will include digital shelves and other futuristic concepts. Is this a threat to Amazon?
Kroger (NYSE:KR) and Microsoft (NASDAQ:MSFT) are teaming up to develop a futuristic grocery store that will feature cutting-edge technologies, designed to bring in more consumers to the latter's stores as grocery trends continue to shift. The high-tech grocery store concept will incorporate elements of cloud computing and digital displays to streamline the shopping experience for customers and employees alike, making the process simpler and faster. Microsoft's Azure offers cloud computing solutions, which will be added to this concept as the platform stores and processes in-store data in a way that will enhance how customers and workers interact with store products. The Kroger stores will have new digital displays that will replace paper tags, while also showing product prices, promotions, as well as nutrition information. These displays will make it easier for workers to change information on a product when moving it to other parts of a store, or even when the company makes promotion or pricing changes on an item. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The displays will also have the ability to change and show icons that examine a customer's grocery list and helps them find the item they need quicker. The concept is being tested at the moment at two Kroger stores, located in Monroe, Ohio and Redmond, Washington respectively-these locations are located near the Kroger and Microsoft headquarters respectively. These stores will rival Amazon's (NASDAQ:AMZN) own high-tech grocery stores that offer checkout-free shopping. KR stock is up 1.9% and MSFT stock is up 0.7% on Tuesday. ### More From InvestorPlace * 7 A-Rated Tech Stocks That Will Power Innovation in 2019 * 10 Stocks That Won Big In 2018 * 10 Hot Companies Going Public in 2019 Compare Brokers The post Kroger, Microsoft Team Up on Futuristic Grocery Store appeared first on InvestorPlace.
Kroger (KR) collaborates with Microsoft to leverage RaaS in enhancing customer's online shopping experience, using the latter's cloud based platform.
In 2018, Amazon (NASDAQ:AMZN) announced that it intended to open 3,000 new cashier-less Amazon Go convenience stores by 2021. That was a big announcement for Amazon stock. Less than ten Amazon Go stores were operating at the time. Convenience-store-giant 7-Eleven has less than 10,000 locations in the U.S. Thus, Amazon was stating that it wanted to go from being nobody to being somebody in the offline-convenience-store world. Since that announcement, the market has largely forgotten about the expansion of Amazon Go. Amazon stock has subsequently dropped into bear-market territory amid broader economic and market uncertainty. Investors are calling into question the valuation of Amazon stock as interest rates rise. Investors are also concerned about Amazon's margins and the elevated competition it's facing in the e-commerce world. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Stocks in the Entrepreneur Index But long-term investors should not dismiss the growth potential of Amazon Go. It will take a while for Amazon Go to move Amazon stock. But Amazon Go has the potential to become a $20 billion business, and that's big enough to make some noise. So the expansion of Amazon Go is yet another reason for long-term investors to buy and hold Amazon stock. ### Where Amazon Go Will Be by 2021 By 2021, Amazon Go has the potential to be a multi-billion-dollar business. RBC Capital recently released a note saying that the average check at Amazon Go stores is roughly $10. RBC estimates that Amazon Go stores generate about $1.5 million of revenue per year. That is 50% more than the average convenience store. Assuming the stores' average annual revenue stays around $1.5 million for the foreseeable future, and Amazon does open 3,000 stores by 2021, then that equates to $4.5 billion in annual sales. It will be a low-margin business, much like Amazon's e-commerce business. By 2021, 2%-3% operating margins can be generated. A 2%-3% margin on $4.5 billion equates to about $110 million of operating profits. After paying taxes of 20%, Amazon Go will be left with $90 million in net profits by 2021. Utilizing a price-earnings multiple of 20, we arrive at a valuation of $1.8 billion. Amazon stock has a $700 billion-plus market cap. In other words, Amazon Go will be just a drop in the ocean by 2021. But that's just the tip of the iceberg. ### Where Amazon Go Will Be in Ten Years Amazon doesn't like to get into industries unless it can dominate the space. For example, the company created the most robust e-commerce ecosystem in the world, and AMZN became the runaway leader of the global-cloud-services market. AMZN will have similar success in the convenience-store sector. Given the company's track record of being relentless until it dominates industries, 3,000 stores by 2021 is just the beginning. 7-Eleven has more than 60,000 stores around the world. It will be tough for Amazon to get to that level, since opening an Amazon Go cashier-less store is far more expensive than opening a relatively primitive 7-Eleven store. Also, Amazon likes to open offline stores in a limited number of locations. For instance, Amazon acquired Whole Foods, which has about 500 stores. That is roughly one-sixth the number of stores that leading grocer Kroger (NYSE:KR) operates. 7-Eleven operates ~60,000 stores. One-sixth of that is 10,000 stores. Average unit volumes should explode higher by then, given increasing consumer awareness and Amazon's intention to make Amazon Go more of an eatery than a convenience store. Top eateries generate more than $2.5 million of sales per store. Average unit volumes around $2.5 million on a 10,000-store base equates to potential revenue of $25 billion. Amazon Go's operating margins should rise as more stores are opened, getting close to Walmart's (NYSE:WMT) level of 5%. A 5% operating margin on $25 billion in sales leaves us with $1.25 billion of operating profits. After taking out 20% for taxes, Amazon Go can generate $1 billion of net profit. Using a price-earnings multiple of 20, we get a valuation of $20 billion for Amazon Go. That's twice the size of Macy's (NYSE:M). market cap Suddenly, these numbers start to become meaningful for Amazon stock. ### The Bottom Line on AMZN Stock When it comes to Amazon stock, there are simply too many growth drivers to ignore. The expansion of Amazon Go is just one of those many growth drivers, and it's a $20 billion-plus opportunity for the company. In the long run, as these growth drivers emerge over the next several years, AMZN will continue to grow its revenues and profits at a brisk pace. Companies that are able to do that tend to have rising stocks, too. As a result, Amazon stock should be bought and held for the long run. As of this writing, Luke Lango was long AMZN, KR, and M. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 20% in December * 5 Chinese Stocks to Avoid Now (But Buy Later) * 3 Big Gainers That Easily Could Be the Best Stocks to Buy Compare Brokers The post Why Amazon's Convenience-Store Business Could Boost Amazon Stock appeared first on InvestorPlace.
The future of grocery shopping is customers walking into a Kroger retail location with their shopping list uploaded to the store's app, Dina Bass said on "Bloomberg Technology" Monday. Kroger needs to modernize many aspects of its entire operation if it wants to be able to take on Amazon's Whole Foods and is looking to Microsoft for help.
Microsoft to Help Kroger Set Up a Connected Grocery Store ## Microsoft partners with Kroger On January 7, Microsoft (MSFT) and American retailing major Kroger (KR) announced a partnership for a futuristic retail store pilot project. Kroger is the largest supermarket chain by revenue and the second-largest general retailer in the United States. The companies have joined hands to offer customers a unique shopping experience via the testing of two connected grocery stores. Microsoft and Kroger will be testing the experience at two Kroger stores located in Monroe, Ohio, and Redmond, Washington. This partnership is considered to be the next step for their EDGE (Enhanced Display for Grocery Environment) shelving system, which they announced in 2018. The system includes digital shelving displays that can exhibit pricing, promotions, and nutritional information. With this pilot, Microsoft aims to make further inroads into customers’ shopping experiences through EDGE. ## About the new pilot system With the help of this new system, customers will be able to formulate shopping lists in an app, which will help them to navigate through the store upon their arrival. EDGE displays can also show an image earlier opted for by the customer to locate the merchandise they need. With the help of these visual cues, employees can, in turn, fulfill pickup orders, making the process quicker and relatively easy to execute. Customers can also be notified by the system if the items they need are out of stock and inform the store staff if the quantity goes down. ## Kroger’s move Analysts and investors see this step by Kroger as an attempt to stay relevant in an industry (IYW) in which its rivals, such as Amazon (AMZN) and Walmart (WMT), have made sizable investments in AI technology. Both Amazon and Walmart have been heavily investing in cashierless technologies to curtail long customer lines, which take up a lot of customers’ time. Kroger’s plan is seen as a response to Amazon’s entry into the grocery store space with its 2017 acquisition of Whole Foods.