Friday, November 4, 2016

Kroger Hints at an M&A Path to Grocery Dominance

Image result for kroger storeKroger Co., with $110 billion in sales last year, has become America's second-largest seller of groceries after Wal-Mart Stores Inc., thanks to 51 straight quarters of positive sales growth, along with acquisitions such as supermarket chain Harris Teeter. But sales growth has slowed lately, and investors -- worried that competition and falling food prices mean Kroger's best days may be behind it -- have pushed the stock down 23 percent this year.

The grocer's shares jumped 5 percent Wednesday, after Kroger soothed some of those worries by confirming its full-year earnings guidance at its annual investor meeting. But the more telling part of the day came near the end of the meeting, when Kroger executives talked about a potential change in their M&A strategy.. . . more

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