Harris Teeter Supermarkets Inc (HTSI), Safeway Inc. (SWY): How Solid The Kroger Co. (KR) Earnings Could Send Shares Soaring

But Kroger hasn’t just thrived from growth by acquisition. The chain has also done an exemplary job in boosting sales per square foot, climbing above rival Safeway Inc. (NYSE:SWY) since 2010 and staying substantially above levels posted by SUPERVALU INC. (NYSE:SVU). That helps explain why Kroger has been in position to extend its reach even as SUPERVALU INC. (NYSE:SVU) sold off a big part of its operations and Safeway Inc. (NYSE:SWY) sold its Canadian stores in June.

Perhaps more importantly, Kroger has taken a swing at Whole Foods Market, Inc. (NASDAQ:WFM) by cutting prices on organic food. By doing so, it hopes to reverse the perception that organics are only for high-income shoppers who can afford premium prices. If it succeeds, it could mean trouble for Whole Foods Market, Inc. (NASDAQ:WFM), which has counted on that perception in producing its high profit margins.

In the The Kroger Co. (NYSE:KR) earnings report, watch to see how management describes the ongoing progress with its acquisition plans. As the grocery chain grows, it’ll be important to sustain the operational excellence that has helped it outperform its peers for so long.

The article How Solid Kroger Earnings Could Send Shares Soaring originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Whole Foods Market (NASDAQ:WFM) and owns shares of SUPERVALU and Whole Foods Market.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.