The Kroger Co. (NYSE:KR) earns profit in fourth quarter


Dallas, Texas 03/07/2014 (FINANCIALSTRENDS) – The Kroger Co. (NYSE:KR) the US retailer has reported its profitable fourth quarter results, leading to a lifetime high on the stock market and upgrading by analysts.

Structuring the Key to profits

The Kroger Co. (NYSE:KR) has been able to achieve this success, based on its multiple store formats and higher value experience. The key factor which has led to Kroger stores making profits in the last quarter has been its approach to setting up the stores in terms of location and user-focused services/products.

The retail chain switched easily from large to small-sized locations, quickly aligning in terms of size as well as presence, in-line with the market segment in which they set up the store. This converted to higher footfalls in short turnaround time. Simultaneously, the retailer focused on introducing a range of special features, aimed at enhancing every buyers visit to the store. This included bringing-in special food sections, depending on the demography of visitors and buyers at the store. There was additional focus on bringing down the check-out time at the end of the shopping spree.

Increase in Sales

The Kroger Co. (NYSE:KR) efforts in engaging buyers paid fruit, with a 4.3 percent increase in sales. Other competitors in this category like Safeway saw sales figures rise by just 1.6 percent in the previous quarter. The company also proposed to be acquired by other companies, given the increase in the number of consolidation happening in the industry.

Analysts back Kroger at lifetime high

The Kroger Co. (NYSE:KR) saw high profile analysts backing it life time high as the shares of this retailer swept past 4.0 million shares in a day, over the 30 day period. The store-front, which is in competition with the likes of Target, holds a market capital of $21.7 billion. The beta stock for the company is currently at 0.95, while the short float is at 2.2%.