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].

US grocer Kroger will shut three automated delivery fulfilment sites in January 2026 and take an impairment charge of around $2.6bn in its third fiscal quarter of 2025. The facilities are in Pleasant Prairie, Wisconsin, in Frederick, Maryland and in Groveland, Florida. The decision follows a review of its e-commerce operations as the grocer increases its use of third-party delivery partners Instacart, DoorDash and Uber Eats. Kroger's revised approach is expected to lift e-commerce operating profit by $4 ...

Core Viewpoint - Shares in Ocado experienced a significant decline, falling further after a 17% drop the previous day, following the announcement from its partner Kroger regarding the closure of three U.S. delivery facilities [1] Group 1: Company Impact - The closure of three delivery facilities by Kroger represents a setback for Ocado, impacting its operational capabilities in the U.S. market [1] - The cumulative effect of the closures has contributed to a notable decrease in Ocado's stock value, reflecting investor concerns about the partnership's viability [1] Group 2: Market Reaction - The market reacted negatively to the news, as evidenced by the continued decline in Ocado's share price, indicating a loss of confidence among investors [1] - The 17% slump in shares prior to the latest drop highlights the volatility and sensitivity of Ocado's stock to developments within its partnerships [1]

Kroger said it will book a $2.6 billion charge as it closes some automated facilities and said it expanded partnerships with DoorDash, UberEats and Instacart https://t.co/Y5im0G21Mq ...

Kroger (KR) said Tuesday it’s closing three automated fulfillment centers as part of an effort to make its delivery operations faster and more profitable. The nation’s largest grocer said it will close facilities in Pleasant Prairie, Wisconsin; Frederick, Maryland; and Groveland, Florida, in January. The company said it will monitor the performance of its five remaining facilities. “We are taking decisive action to make shopping easier, offer faster delivery times, provide more options to our customers, ...

Core Viewpoint - Ocado faces significant challenges as its largest customer, Kroger, plans to close three automated warehouses, leading to a £300 million loss in market value and raising doubts about Ocado's future in the grocery technology sector [1][3]. Summary by Sections Financial Impact - The closure of the warehouses is expected to result in a revenue loss of $50 million (£38 million) for Ocado next year [2]. - Following the announcement, Ocado's shares dropped by as much as 16.5%, erasing nearly £300 million from its market capitalization [3]. Customer Relationship - Kroger, which partnered with Ocado in 2018, has built eight warehouses but is now reconsidering its technology, casting doubt on plans for an additional 20 facilities [4][5]. - The decision to close the three facilities in Maryland, Wisconsin, and Florida reflects a shift in Kroger's strategy towards in-store order fulfillment [1][6]. Market Position and Competitors - Ocado's ambition to be the "Tesla of groceries" is now questioned, as competitors are opting for in-store fulfillment models, similar to those used by Morrisons, Co-op, and Iceland in the UK [3][7]. - Analysts suggest that Ocado's warehouse model may not be economically viable in the U.S. and other mass-market regions, indicating a potential reevaluation of its total addressable market [7][8]. Leadership Changes - Kroger's strategic shift follows the departure of its CEO Rodney McMullen, who was a key ally of Ocado's founder, Tim Steiner [8].

Core Insights - Kroger will incur a $2.6 billion charge due to the closure of some automated facilities [1] - The company has expanded its partnerships with DoorDash, UberEats, and Instacart [1] Financial Impact - The $2.6 billion charge reflects the financial implications of operational changes within the company [1] Strategic Partnerships - The expansion of partnerships with DoorDash, UberEats, and Instacart indicates a strategic move to enhance delivery services and improve customer reach [1]