Kroger Industry Analysis

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Professionals have dedicated their life’s work to the understanding of finance and work tirelessly to study its complexities. Fortunately, a little bit of research is all one needs to begin their journey to better their understanding of domestic and global economy. However, the million dollar question is, “Where to begin?” To understand where the United States (U.S) economy is headed, one may think to learn where it has been in the past. The intent of this research paper is to give a brief overview of the U.S. economy (past present, and future), an analysis of a specific industry, and a domestic company that operates within this industry. For many years, the U.S has shared the economic #1 spot with no one. Indeed, the United States has been…show more content…
Kroger was founded in Cincinnati, Ohio, back in 1883 by Barney Kroger. Barney, the son of a merchant, has a very simple motto “Be particular. Never sell anything you would not want yourself.” This simple mission statement has catapulted Kroger to the huge company it is today. Now, Kroger with over 2600 stores in 34 states and under two dozen banners. What has truly made Kroger a powerhouse is it manufacturing capabilities, and it certainly shows. Kroger owns and operates 37, nearly zero-waste, food processing facilities. These facilities produce everything from dairy products, bakery products, general grocery and more. An impressive 26% of Kroger’s total sales are directly made from its corporate brands, giving Kroger a distinct advantage (Kroger, p.4). Their current management team continues to carry out the message sent by Barney all those years ago. Rodney McMullen, Kroger CEO, has invested the better part of his life (over 30 years) growing alongside the company. Other key members of Kroger’s senior leadership, such as Marnette Perry, Michael Ellis and Kathleen Barclay all have long tenures with Kroger (some over 40 years). Personally, I have had the opportunity to meet with both Rodney McMullen (pictured below) and Marnette Perry, and they have a zeal for the prospectus of the Kroger Company that is difficult to…show more content…
Particularly in the “middle market” strategy where Kroger has placed a lot of emphasis on the smaller store format to compete with players most notably Aldi and Save a Lot. Walmart has their own version, with their line called Walmart Neighborhood Stores, which also have a much smaller footprint than their large department stores. Kroger’s most recent data suggest that its actual P/E is 20.74, as compared to the industry average of 24.6, would be slightly lower than the national average. Kroger’s EPS was last reported around .42, as compared to the industry average of .35, which is higher than the national average. The two illustrations below assist as a

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