Yahoo Finance Kroger (KR) Expands Delivery Capabilities, Efforts on Track
The Kroger Co. KR has been making strategic endeavors to strengthen its position in the industry. The company has been making investments to enhance product freshness and quality as well as expand digital capabilities. In the latest developments, this mega grocery retailer has unveiled the opening of a new store in Austin, TX.
This facility will help customers tap into the company’s selection of fresh items, and Our Brands products and national brands, coupled with individualized grocery offers. The orders will be delivered directly to their doors by professional associates. Management said that Austin is among the fastest-growing cities in the country, thus expanding the customer base and Kroger’s Delivery shopping experience.
This 70,121-square-foot store facility will function in connection with the Dallas fulfillment center. The orders will be picked at the products' peak freshness within the Dallas facility. The associates will assemble the orders and place them safely to travel to Austin. Once these orders arrive, they will be placed on refrigerated delivery trucks and delivered to the customers’ doors. The facility will provide jobs to around 70 associates.
What’s More?
Kroger has been boosting market share with endeavors such as the expansion of plant-based products, digital coupons, order online pick up in store capabilities and smart shopping lists. The company is undertaking every effort to boost profits and reduce costs. Also, its focus on the margin-rich alternative profit business bodes well.
Kroger’s digital business remains one of the key growth drivers, thanks to its Delivery Now initiative, Boost membership program and the rollout of new customer fulfillment centers. Evidently, customers are opting for e-commerce solutions for their grocery and other household essentials. During the fourth quarter of fiscal 2022, digital sales grew 12%, led by 22% growth in Delivery Solutions. The company is focused on no-contact delivery options, low-contact pickup services and ship-to-home orders.
Its ‘Kroger Delivery Now’ service, in collaboration with Instacart, provides customers with food and household staples at affordable prices in 30 minutes. It has launched Kroger Floral in partnership with DoorDash. Apart from these, the company had earlier announced the Kroger Drone Delivery pilot in partnership with Drone Express, reinforcing the importance of timely delivery to customers. Moreover, it also continued to expand contactless payment solutions like Kroger Pay, Scan as well as Bag and Go. Kroger has been expanding its customer fulfillment centers to ensure efficient deliveries. These well-chalked endeavors help Kroger boost sales and drive overall profitability.
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Shares of this Zacks Rank #1 (Strong Buy) company have increased 10.1% in the past three months, outperforming the industry’s 2.3% gain. You can see the complete list of today’s Zacks #1 Rank stocks here.
More Solid Picks in Retail
We have highlighted three other top-ranked stocks, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and Boot Barn BOOT.
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 1.6% and 33.1%, respectively, from the year-ago reported figures. ANF delivered a negative earnings surprise of 141.3% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 23.3% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.4% and 3.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
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The Kroger Co. (KR) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
