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2017-06-22

  • The Science of Hitting commented on The Science of Hitting's article 06-22 07:18
    Some Thoughts on Kroger
    I wrote an article about Kroger (KR) in March after the company reported fourth-quarter results for fiscal 2016 (link). Here was the premise of that...
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    The Science of Hitting 06-22 08:18
    • For what it's worth, here's Goldman's take on Lidl pricing after visiting a few stores in Virginia Beach (Lidl opened its first 10 U.S. stores last week): "Our own pricing study found meaningful discounts to Kroger's Harris Teeter on private label goods, but similar pricing to WMT, and above ALDI."

2017-06-21

2017-06-20

  • The Science of Hitting commented on The Science of Hitting's article 06-20 06:13
    Some Thoughts on Kroger
    I wrote an article about Kroger (KR) in March after the company reported fourth-quarter results for fiscal 2016 (link). Here was the premise of that...
    View all 4 comments
    The Science of Hitting 06-20 07:13
    • Swnyc2 - I largely agree with what you've said, but caution that some may be overreacting just a tad. It's worth remembering that Aldi already has ~1,600 stores in the United States and has been in the market for 40 years. They will remodel much of the existing base (some of the one's I've been to need it badly) and add another ~900 stores. It's a great value for the consumer that's happy with private label goods and no frills shopping (bring your own bags, pay to "rent" a cart, etc). Thanks for the comment!

2017-06-19

  • The Science of Hitting commented on The Science of Hitting's article 06-19 05:51
    Some Thoughts on Kroger
    I wrote an article about Kroger (KR) in March after the company reported fourth-quarter results for fiscal 2016 (link). Here was the premise of that...
    View all 2 comments
    The Science of Hitting 06-19 06:51
    • Swnyc2 - There's no dobut Aldi and Lidl have ambitious plans. There's also no doubt that they've hurt traditional grocers in the UK (the most recent data I could find had the combined share for Aldi and Lidl at ~12%). What's happened to consumer perception of private label is pretty amazing. Look at this study from Bain; the fourth graphic shows that roughly 50% of consumers across retailers "agree" or "strongly agree" that private label products are as good or better than national brands:

      https://www.consultancy.uk/news/13541/rise-of-hard-discounters-to-hit-market-share-of-large-us-supermarkets

      In what’s already a fiercely competitive industry, things are about to heat up even more. Kroger must continue to improve if they plan on holding / gaining share. Thanks for the comment!
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