Wal-Mart and Target Are Being Crushed by Supermarkets in the Business of Selling Food
Traditional supermarkets such as Kroger (KR – Get Report) and Safeway are schooling mass merchants Wal-Mart (WMT – Get Report) and Target (TGT – Get Report) in the business of selling fresh food and packaged goods, sending two of the nation’s most formidable retailers back to the drawing board to reignite their sales.
The winning recipe for grocers Kroger and Safeway, which don’t have to be retailers of everything, has been a result of investments in customer service, more competitive prices, and an expansion of health and wellness products. Ohio-based Kroger, which has 2,635 stores in 34 states, has notched an impressive 45 straight quarters of same-store sales increases in spite of the ruthless price competition in weekly circulars and online at Wal-Mart and others.
Kroger’s natural foods, meat, deli and pharmacy departments all posted double-digit percentage same-store sales growth last year. Investors have subsequently pushed shares up 66{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in the past year, compared to 3.2{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} and 36{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} gains for Wal-Mart and Target, respectively. The Street – Read more…
The winning recipe for grocers Kroger and Safeway, which don’t have to be retailers of everything, has been a result of investments in customer service, more competitive prices, and an expansion of health and wellness products. Ohio-based Kroger, which has 2,635 stores in 34 states, has notched an impressive 45 straight quarters of same-store sales increases in spite of the ruthless price competition in weekly circulars and online at Wal-Mart and others.
Kroger’s natural foods, meat, deli and pharmacy departments all posted double-digit percentage same-store sales growth last year. Investors have subsequently pushed shares up 66{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in the past year, compared to 3.2{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} and 36{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} gains for Wal-Mart and Target, respectively. The Street – Read more…
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