The Kroger Co. (KR) May Gain Higher Market Share With Competitive Pricing And Faster Inventory Turnaround

In a live interview with CNBC, Andy Wolf, from BB&T Capital Markets, speaks about how The Kroger Co. (NYSE:KR) has been reinventing itself as well as gaining market share in the process.

The Kroger Co. (NYSE:KR)

According to Wolf, The Kroger Co. (NYSE:KR), which is one of the biggest old-line supermarkets has been reinventing itself for the last 10 years, which has helped them to bring down their prices and compete with Wal-Mart Stores Inc. (NYSE:WMT). Thus, helping them to gain market share.

He added “When you start to gain market share as a grocer, a lot of good things happen. And really to the point of this interview, your food actually begins to get fresher, because it turns really faster. So, whether you are sourcing it from a local farmer or even across the country, from California to let’s say to a store in, you know, in Florida, if its moving faster in your grocery aisles it is going to be lot fresher and better. So, Kroger now has reached a point where their pricing is actually considered a merit.”

Wolf said that compared to competitors, The Kroger Co. (NYSE:KR) is heading towards becoming an excellent merchant in farm to shelf products because of its pricing since competitors have a higher pricing on products.

According to Wolf, investors are looking for some degree of pricing power, as well as market share and that, is the reason investors prefer Kroger which had got both of these features in it compared to companies like Whole Foods Market Inc. (NASDAQ:WFM), which are reducing prices aggressively to gain market share and which is not good form an investor point-of-view.

Wolf said that his company had given a ‘Hold’ rating on the stock of Whole Foods Market Inc. (NASDAQ:WFM), which is considered as one of the best supermarkets in the country, after they noticed aggressive price cuts, especially on fast moving items, which had huge price cuts up to 15%.

Wolf has given a ‘Buy’ rating on The Kroger Co. (NYSE:KR) with a price target of $56 while the current market price is around $49.


Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!