Kroger Is A Safe Haven In The Food Retail Sector

The Kroger Co. (KR) is set to release earnings before the market opens on Thursday, June 15th. Both EPS and Revenue look to continue an upward trend in which they have been fairly in line with both Estimize and Wall Street predictions. For Q1 EPS, the Estimize community is slightly more optimistic than Wall Street, coming in one cent higher at $.58. As previous Q1’s indicated we should see a large increase in revenue, the Estimize community came to a consensus of $35,570 million which is slightly higher than the street.

The jack-of-all-trades, Kroger which is mostly known for its supermarkets, also operates department stores, jewelry stores, and convenience stores all over the United States. Kroger operates in a market that is extremely saturated with competitors like Walmart and bargain-brand chain Aldi. However, Kroger recently found a break when Marsh supermarkets filed for bankruptcy and 11 of the 44 stores were sold to a Kroger subsidiary. While many investors are worrying about the retail sector, supermarkets are not something that will fade. While online grocery services such as Instacart, Amazon Fresh and Fresh Direct have attempted to eliminate brick and mortar grocers, there will always be a market for those that like to pick out their produce and other items in person. Consumers can live without the newest pair of shoes or pants however food is something that was always be in “style”.The 12-month price target sits at $35.00.