Kroger (KR)

[str8_chuter]

You're welcome.

KR is a market leader. Number 2 in retail grocery. Number 3 in retail gasoline. A tenacious competitor. However at this stage of the credit cycle the going gets much tougher for all, even the leaders.

Analysts have harped on product deflation hurting results over the past couple of years but not to worry, that's all in the past.

KR has indeed been instituting modest price increases this quarter. We see it locally. However, to proclaim that deflation is done amounts to nothing more than whistling past the graveyard. One need only look at a chart of $USD to see what's coming. Deflation just getting warmed up.

Next couple years going to be challenging for the company. The weekly KR chart, in a downtrend since Dec 2015, reflects this risk.