Kroger Lacks a Competitive Edge, Even as Its Value Proposition Performs Amid Economic Uncertainty

With about 2,700 locations across the United States and a portfolio of over 20 different banners, no-moat Kroger is one of the nation’s leading grocery retailers. It built its vast footprint through expansion of its namesake banner along with numerous acquisitions of competing chains, giving it an ingrained presence in many US communities. Considering this, an immense top line (about $150 billion in fiscal 2024) that brings a strong standing with suppliers, and its private label exposure (about 27% of retail sales before fuel), along with it loyalty membership program, Kroger’s competitive standing appears enviable at first glance.