Shares in the FTSE 250 company jumped as much as 16% in early trading on Friday before settling nearly 7% higher, offering brief respite for a business that has seen its market valuation collapse from £22 billion during the pandemic boom to barely £1.6 billion today. The payout follows Kroger's decision to cancel the opening of a fourth Ocado-powered customer fulfilment centre in Charlotte, North Carolina, one of two facilities previously scheduled for 2026.
Kroger is one of the major grocery chains in America, with a vast selection of products from name and private label brands. Kroger's private label brands are booming because they offer quality products for a much lower price than name-brand competitors. Unfortunately, Kroger's private label brand, Simple Truth, fails to deliver in the yogurt department. In a taste test of 10 frozen yogurt brands, the Simple Truth raspberry cheesecake Greek frozen yogurt bars were one of our least favorites.
Kroger, one of the country's largest grocery chains, followed suit by launching digital coupons in the late-aughts. Those clickable savings are now accessible via an app and the company's website, which are linked to rewards cards. However, the process hasn't been embraced by all shoppers, particularly anyone who lacks reliable access to the internet or a smartphone, along with the capability to navigate those communication technologies.
The proposed merger between Kroger and Albertsons faced significant opposition, leading to its rejection due to concerns about reduced competition and increased consumer prices.
