The supermarket industry is like a modern coliseum since it brings as much action as gladiator fights did, but in the current state of affairs only the margins bleed, favoring the one that’s stronger in numbers. Whole Foods Market, Inc. (NASDAQ:WFM) and The Kroger Co. (NYSE:KR) are two giants showing different battle techniques resulting in opposing results. CNBC’s Jim Cramer, analyzes the situation in which the supermarket chains posed themselves, and despite the great difference in performance, it’s not clear if somebody will leave the arena on the shield, although the battle is tough so far.
Whole Foods Market, Inc. (NASDAQ:WFM)’s price skydived about 34% year to date to about $38 and is currently in a slump as figures would tell. However, we might be experiencing a fierce comeback if matters will be treated properly by the organic products provider.
“First, Whole Foods is an early adopter of Apple’s new iPhone 6 mobile payments system. Did you hear Tim Cook actually called out in a conference, so has Kroger, but you have to believe that the more upscale Whole Foods will have more iPhone users per store than Kroger,” said Jim Cramer.
He also mentioned the new affinity program that is currently being developed by Whole Foods Market, Inc. (NASDAQ:WFM), who tries to keep customers loyal with different benefits and the fact that organic foods have gotten more expensive, which compromises the profitability of the Austin, Texas-based giant.
There’s little to comment on what The Kroger Co. (NYSE:KR) might need to do for a better profitability. Its stock value is close to $52, some 31% more than the start of the year. The company already announced impressive growth in same store sales and future plans of enlarging the number of employees. Everything seems to be flowing in the right direction. The only major difference between these two companies, besides percentage growth, is just the product spectrum that they offer with the latter bringing organic and partly-organic commodities to the customer’s choice compared to the former’s strategy of only organic products. It is unlikely that the current difference will be maintained over a longer period of time, but it is uncertain if it will be enough for Whole Foods Market, Inc. (NASDAQ:WFM) to get back on its feet and parry future hits.