Kroger (KR)

[str8_chuter]

Watching it as well but not a buyer just yet.

KR has sharp marketing and management. They're not afraid of Amazon, much less Whole Foods. They've gone to war with the likes of Wal-Mart and Target and continue to thrive.

Locally, they had to fend off Target's expansion. Target lost...badly. Kroger beat them on price and product selection, not to mention ease of access. Kroger is the BIG DOG here, Safeway is second, Target is an also-ran.

One reason Kroger keeps the top spot: the company continues to invest in its stores, regularly renovating them to keep up appearances. Stores usually clean and organized (Target's stores are a mess). At one prime location here, the company didn't just renovate, they went BIG. Tore down the old store, built a larger facility on the same footprint with underground parking. Took more than two years and cost more than $65MM. Serious commitment.

Don't get me wrong. Kroger stores have issues as well. The produce and bakery aisles need a boost in quality. Local specialty chains beat them on produce, Safeway beats them in the bakery aisle.

Though I like the company and its strategy, I don't like the chart of the stock price. Looks like it wants to be a teen again. Also wasn't enamored to read that the company recently floated $1.5B in LT debt to fund the company pension.