Overview

Kroger stock has been tumultuous of late. Kroger (KR) is one of the largest North American grocery store retailers operating 2,790 retail food stores in 35 states. The company has a lot different names under its belt including Kroger, Food 4 Less, City Market, Dillons, Fred Meyer, Fry’s, Harris Teeter, and Jay C. Kroger stock has been up and down, but operationally the company is rather solid. What we mean here is that also has over 2,000 pharmacies, 783 convenience stores, 219 health clinics, 306 jewelry stores, 1,480 supermarket fuel centers, and 38 food processing plants. Kroger’s stores operate as food and drug stores, multi-department stores, marketplace stores, and warehouses.

Operations

Let us briefly describe what we see here operationally. The food and drug stores are largely comprised of food inventories ranging from perishables such as fresh seafood, produce, and other organic food items but also include general merchandise, pharmaceutical items, and pet centers. Multi-department stores stock a collection of general merchandise products ranging from electronics, apparel, toys, fine jewelry, home furnishings, and automotive products. Marketplace stores are an overarching element of the previous two types of stores: offering grocery, pharmacy departments, and general merchandise products ranging from outdoor living products, electronics, and home goods. Warehouses stock grocery, health, and beauty care items.

New directions

Make no mistake, the company has encountered numerous impediments to growth ranging from extreme worries about competitors like Amazon (AMZN), fluctuations in food prices, and competitive promotional environments. The company has also worked to improve its margins and manage inventory.

The company’s initiatives to expand its store base, set up an online ordering platform, and proliferate digital coupons/other promotional material are all efforts to remain competitive. KR’s various strategic initiatives are on going.