Tomahawk, WI 9/16/2013 (BasicsMedia) – With more than 2,400 supermarkets and multi-department stores, The Kroger Co. (NYSE:KR) is a major retailer in the U.S. In addition to these, the company is also the proud owner of some 791 convenience stores, as well as 348 jewelry stores. Lately, the firm has witnessed a surge in its shares and this article seeks to look at the reasons which have made this possible. This is of great interest bearing in mind that consumers have been cutting down on their expenses. Wall Street as a whole is quite pleased with the results which have been posted by KR. Why is this so?


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KR has reported an increase in its revenue by around 4.58% thus settling at $22.72 billion, compared to what was reported in the same quarter in 2012. It not only met but beat the expectations of industry analysts, such as myself. The company’s management is of the opinion that the strong showing thus far, places the company in much stronger position of delivering the earnings per share which it promised its shareholders at the start of 2013. The top executives of this company are of the belief that they owe the strong showing to their very relevant strategies.

What is Responsible for KR’s Strong Showing?

KR owes a lot of its very strong and impressive showing to the focus on customer. It has called its strategy, the Customer 1st Strategy. The result is that it now enjoys the trust and confidence of a very loyal customer base. This has inevitably led to increased sales for the company, in addition to creating a sustainable shareholder value. As log as the customer continues to feel highly valued and appreciated, he/she is likely to visit the stores operated by KR thus leading to increased revenues, sales and profits, which is all good news to those who hold shares with it.

KR’s Latest Quarter vs Previous Quarter

A keen look at the company’s performance in the latest quarter against those of the previous quarter indicates that there has been a fall in revenue. The latest quarterly revenue stands at $22.72 billion, which is an improvement from the $22.71 billion analysts in Wall Street had projected for KR. But of concern is that it is a major drop from the highs of $30.04 billion posted from the previous quarter. This trend has led analysts to conclude that the company’s results for the next quarter will also be much lower than what has thus far been reported.

All in all, KR is a stock worth adding to your portfolio as an investor. The company has proven time and again that it has the ability to remain afloat even when others are not performing anywhere near its levels. It already has its eyes firmly on a $225 million industrial project which is located in the metro Atlanta region. Once it obtains the documents giving it ownership of such a facility, it will be able to put up a freezer component, a massive distribution center, in addition to a maintenance facility for its fleet of trucks, thus enjoying better times than it has done so far.

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