Core Points - Thanksgiving week marks the beginning of the holiday season, with varying significance for different individuals, including family gatherings and shopping events like "Black Friday Eve" [1] - Banks and federal offices, including the stock market, are closed on Thanksgiving Day, while some retailers, such as Kroger, choose to remain open with limited hours [1] Retailer Operations - Kroger stores will operate with limited hours on Thanksgiving Day, closing at 5 p.m. to allow employees time for their own holiday preparations [3][6] - The limited hours apply to all brands under the Kroger umbrella, including Baker's, City Market, Dillons, and others [3] - Many retailers provide holidays off for employees or offer extra pay for working on holidays, but only some Kroger employees receive bonus wages due to union agreements [4] Competitor Status - Competitors of Kroger that will be closed on Thanksgiving include Costco, Walmart, and Trader Joe's among others [5][8]

Group 1 - Kroger Co. is one of the largest grocery retailers in the US, known for its significant store footprint and private label brands [1] - The company is performing well despite a competitive market environment [1] Group 2 - The analyst has over 10 years of experience researching various companies across different sectors, including commodities and technology [1] - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, covering hundreds of companies [1]

Core Insights - Kroger Co. is one of the largest grocery retailers in the US, known for its extensive store network and private label brands [1] Company Overview - The company is performing well despite a competitive landscape [1] Analyst Background - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology [1]

Group 1 - Jim Cramer has had a mixed view on The Kroger Co. (NYSE:KR) throughout 2025, advising viewers to avoid the stock in March but expressing a more favorable opinion in May and September [2][3] - In September, Cramer highlighted that Kroger's performance numbers have exceeded expectations and approved of the company's decision to close three fulfillment sites to enhance delivery partnerships [2] - Cramer noted a significant e-commerce charge of $2.6 billion for Kroger, indicating a positive outlook on the company's expansion of its relationship with Instacart [3] Group 2 - The article suggests that while Kroger has potential as an investment, there are AI stocks that may offer higher returns with limited downside risk [4]

Core Insights - Kroger is adapting to significant changes in consumer shopping habits, particularly the shift towards online grocery shopping, which has accelerated since the pandemic [1][2] - The company plans to close five fulfillment centers by January 2026 to streamline operations and improve delivery efficiency, which will impact its delivery services in several markets [3][6] Business Strategy - The closures are expected to contribute to a $400 million increase in e-commerce operating profit by 2026, allowing Kroger to reinvest in lower prices and improved store conditions [6] - Kroger anticipates $2.6 billion in impairment charges in Q3 2025 due to the closures and underperformance of its automated fulfillment network, but expects comparable sales to remain neutral [8] Employment Impact - The closures will result in significant job losses, with the Groveland facility alone accounting for 935 jobs, and other facilities contributing to a total of over 1,400 jobs lost [7][10] Market Presence - The closure of fulfillment centers in Florida will eliminate Kroger's grocery delivery program in the state, affecting customers who relied on these services [10][11] - Kroger operates 1,238 grocery stores across 16 states but has not had physical locations in Florida since the late 1980s [9] E-commerce Growth - U.S. online grocery sales increased by 104% during the pandemic and are projected to grow 12.3% annually through 2029, with over 148 million Americans expected to buy groceries online by 2025 [2] Partnerships and Innovations - To adapt to changing consumer habits, Kroger is expanding partnerships with third-party delivery services like Instacart, DoorDash, and Uber Eats, and will integrate Instacart's AI tool into its app [14][15] - The company is piloting store-based fulfillment in high-volume markets to enhance fulfillment capabilities and improve the in-store experience [15] Financial Performance - In Q2 of fiscal 2025, Kroger reported a total sales increase of 0.08%, with same-store sales up 3.4%, driven by a 16% rise in e-commerce sales [16]

Group 1 - The Kroger Co. (NYSE:KR) is highlighted as a stock with potential for investment, particularly due to significant changes within the company that may present buying opportunities at lower prices [1] - Kroger operates grocery and general merchandise stores, providing a range of products including food, pharmacy, household items, and fuel [2] - While Kroger is recognized as a potential investment, certain AI stocks are suggested to offer greater upside potential and less downside risk [2]

Ocado share price continued its painful crash this week as it plunged to its lowest level since 2013. It has plunged from the pandemic high of 2,910p to the current 187p as setbacks accelerated. ...

Company Performance - Kroger's stock closed at $65.90, down 2.24%, underperforming the S&P 500's daily loss of 1.56% [1] - Over the past month, Kroger's stock has decreased by 1.73%, compared to the Retail-Wholesale sector's loss of 2.47% and the S&P 500's loss of 0.26% [1] Upcoming Earnings - Kroger is expected to report earnings of $1.04 per share, reflecting a year-over-year growth of 6.12% [2] - The consensus estimate for revenue is $34.31 billion, indicating a 2.02% increase from the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $4.79 per share and revenue at $148.79 billion, representing changes of +7.16% and +1.13% respectively from the prior year [3] - Recent revisions to analyst forecasts for Kroger may indicate shifting business dynamics, with positive revisions suggesting optimism about the business outlook [3] Valuation Metrics - Kroger's Forward P/E ratio is 14.09, which is lower than the industry average Forward P/E of 15.07 [6] - The PEG ratio for Kroger is 1.96, compared to the Retail - Supermarkets industry average PEG ratio of 2.3 [6] Industry Context - The Retail - Supermarkets industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 70, placing it in the top 29% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - A Consumer Reports investigation revealed that Kroger-owned retailers have been overcharging customers due to expired sales labels, leading to an average overcharge of 18.4% per item, or $1.70 extra [2][5]. Group 1: Investigation Findings - The investigation involved secret shoppers visiting 26 Kroger-owned stores, uncovering overcharges on more than 150 grocery items, including meat, fish, and medications [2]. - The expired sales tags were identified as a significant issue, with many stores having outdated pricing that resulted in customer overcharges [3][6]. Group 2: Broader Industry Context - Kroger is not the only retailer facing pricing controversies; other stores like Target and Dollar General have also been fined for price scanning errors, with fines reaching up to 22% above the sticker price [4]. - In California, Albertsons was fined $3.9 million for overcharging customers and false advertising regarding product weights, while Dollar General settled for $850,000 over alleged price accuracy violations in Wisconsin [5]. Group 3: Underlying Issues - The investigation indicated that while some stores maintained accurate pricing, those with the most errors were struggling with staffing cuts, suggesting that employee management may be a contributing factor to the pricing issues [6].

Core Insights - Kroger will close three automated delivery fulfillment sites in January 2026, incurring an impairment charge of approximately $2.6 billion in its third fiscal quarter of 2025 [1] - The closures are part of a strategic shift towards a hybrid model that combines physical stores, automated sites, and third-party delivery partnerships [2] Group 1: E-commerce Strategy - The revised approach is expected to increase e-commerce operating profit by $400 million in fiscal 2026 and will not impact identical sales excluding fuel [2] - Kroger has expanded its partnership with Instacart, which has become its primary fulfillment provider, and will implement Instacart's Cart Assistant AI tool [2][3] Group 2: Third-party Partnerships - Kroger is widening its arrangement with DoorDash and plans to launch a new experience on Uber Eats Marketplace in early 2026 [3] - Increased traffic through third-party platforms is anticipated to support growth in Kroger's retail media business [3] Group 3: Operational Adjustments - The company will continue to evaluate the performance of remaining automated sites and maintain this model in higher-density markets [3] - Kroger plans to pilot store-based, capital-light automation in busy areas to enhance fulfillment capacity and improve store operations [3] Group 4: Workforce Expansion - In preparation for the holiday season, Kroger announced plans to hire over 18,000 employees across various roles, including cashiers and pharmacy technicians [4][5]