Kroger's Private-Label Arsenal and Data-Driven Promotional Capabilities Should Capture Trade-Down

Of the traditional grocers, we believe Kroger's scale, partnerships, private-label fare, and data capabilities uniquely position it to defend its returns against a competitive onslaught that should intensify as Amazon, mass merchandisers, and hard discounters price aggressively to boost volume. Thus, we contend that Kroger still benefits from enduring intangible assets and cost advantages (even if its acquisition of Albertsons is derailed by regulators).