Noting that its competitors are increasingly following Kroger’s store-building and stocking approaches, the nation’s 2nd largest grocer (after Walmart) said in a Securities and Exchange filing that 2017 will see fewer stores developed and more done in the areas of technology and e-commerce.
A Food Dive analysis said this past weekend that financial analysts more than likely view this move as a savvy one, demonstrating Kroger’s ability to flew with the needs of its markets. (The company operates a number of store names scattered across the country.) Food Dive noted that Kroger has been aggressively expanding its Click List e-commerce service as it works to establish itself as the go-to company for online sales across the country.
In the SEC filing, company executives noted that their first same-store sales slip in 52 quarters was due to food price deflation couple with an active development program. The company said it will be growing its footprint at a slower pace – by 1.8% compared to last year’s 3.44% – as it cuts back to 55 new projects, compared to 2016’s 85. And capital expenditures, the company said, will fall 13% to between $3.2-3.5 billion, compared to $3.7 billion in 2016.