Kroger Can Best Weather Grocery Price War: Moody’s

 

By Shoshanna Delventhal, Investopedia

November 13, 2017

 

America’s leading grocery store chain, The Kroger Co. is the best positioned among its peers to compete in the heavily disrupted food retail space. The entrance of e-commerce and cloud computing giant Amazon.com Inc. has exacerbated a price war as food industry giants including Kroger, Wal-Mart Stores Inc. and Alberston’s compete for market share.

 

In a recent research report, Moody’s Investors Service pointed to Kroger’s massive scale as a main factor in offering it the financial flexibility to withstand the prolonged pricing pressures.

 

"Based on sales, Kroger is twice the size its next competitor in the traditional US grocery space," wrote Moody's Vice President Mickey Chadha. "In addition, it has a diversified range of stores, strong private label penetration, geographic reach and a robust balance sheet, which will buttress it during a period of escalating price wars in the food patch."

 

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