fareastwarriors Posted February 5, 2018 Share Posted February 5, 2018 Kroger exploring sale of convenience stores http://www.reuters.com/article/us-kroger-investors/kroger-exploring-sale-of-convenience-stores-shares-rise-idUSKBN1CG1R9 Kroger to sell its convenience stores to UK's EG Group for $2.15 billion https://www.cnbc.com/2018/02/05/kroger-to-sell-its-convenience-stores-to-uks-eg-group-for-2-point-15-billion.html Link to comment Share on other sites More sharing options...
DooDiligence Posted February 6, 2018 Share Posted February 6, 2018 Kroger exploring sale of convenience stores http://www.reuters.com/article/us-kroger-investors/kroger-exploring-sale-of-convenience-stores-shares-rise-idUSKBN1CG1R9 Kroger to sell its convenience stores to UK's EG Group for $2.15 billion https://www.cnbc.com/2018/02/05/kroger-to-sell-its-convenience-stores-to-uks-eg-group-for-2-point-15-billion.html Amazon should have bought Kroger instead of Whole Foods. All those little potential satellite pharmacies would have been great for them. Link to comment Share on other sites More sharing options...
Cigarbutt Posted February 15, 2020 Share Posted February 15, 2020 Kroger exploring sale of convenience stores http://www.reuters.com/article/us-kroger-investors/kroger-exploring-sale-of-convenience-stores-shares-rise-idUSKBN1CG1R9 Kroger to sell its convenience stores to UK's EG Group for $2.15 billion https://www.cnbc.com/2018/02/05/kroger-to-sell-its-convenience-stores-to-uks-eg-group-for-2-point-15-billion.html Amazon should have bought Kroger instead of Whole Foods. All those little potential satellite pharmacies would have been great for them. I guess somebody has finally taken notice of your advice. https://www.cnn.com/2020/02/14/investing/berkshire-hathaway-warren-buffett-kroger/index.html I imagine it could be useful to take a deeper look again. It's funny because there's a less well known NJ operator which is trying take a bite of the Big Apple and which compares favorably on many metrics (especially inventory turnover). Brick and mortar is dead, long live brick and mortar!? Link to comment Share on other sites More sharing options...
Okonomen Posted February 15, 2020 Share Posted February 15, 2020 First of all as a grocery store i think kroger is pretty insulated from ecommerce, but couldnt it just be one of combs/weschlers investments? Wouldnt put too much into it regarding BRK? The size of the position is also miniscule Link to comment Share on other sites More sharing options...
DooDiligence Posted February 15, 2020 Share Posted February 15, 2020 Kroger exploring sale of convenience stores http://www.reuters.com/article/us-kroger-investors/kroger-exploring-sale-of-convenience-stores-shares-rise-idUSKBN1CG1R9 Kroger to sell its convenience stores to UK's EG Group for $2.15 billion https://www.cnbc.com/2018/02/05/kroger-to-sell-its-convenience-stores-to-uks-eg-group-for-2-point-15-billion.html Amazon should have bought Kroger instead of Whole Foods. All those little potential satellite pharmacies would have been great for them. I guess somebody has finally taken notice of your advice. https://www.cnn.com/2020/02/14/investing/berkshire-hathaway-warren-buffett-kroger/index.html I imagine it could be useful to take a deeper look again. It's funny because there's a less well known NJ operator which is trying take a bite of the Big Apple and which compares favorably on many metrics (especially inventory turnover). Brick and mortar is dead, long live brick and mortar!? My sister has owned Kroger for a few years now. I couldn't figure out why they sold the Tom Thumb chain. One near my home had a full pharmacy in it, which I used & liked. Looks like they bought back shares, in a meaningless way, with the proceeds. https://csnews.com/what-we-know-about-new-owner-krogers-c-stores --- Interesting note on the brothers who started EG. "It (EG) was founded by brothers, Zuber Issa and Mohsin Issa in 2001 with a single petrol filling station in Bury, Greater Manchester. The decision to ban drink from the outlets is inevitably costing the family a considerable amount in terms of sales and profit, however it has not stalled their success." www.dailymail.co.uk/news/article-3412910/Petrol-station-firm-owned-Muslim-family-bans-alcohol-shop-shelves-not-ethical-sell-drink-people-driving.html IDK if they've they've since re-started alcohol sales in their UK stores. Looks like they have a different level of commitment in the US. --- EG Group seems intent on entering the US convenience store market. https://cstoredecisions.com/2019/10/23/eg-group-completes-cumberland-farms-acquisition/ --- VLGEA is too small to make a blip on BRK income but it still looks like a great little Berkshire biz. Who knows if management would be interested. Not why I bought anyways. Link to comment Share on other sites More sharing options...
rogermunibond Posted February 15, 2020 Share Posted February 15, 2020 The resilience of good grocers is impressive. Wegmans is my exemplar in this regard. Can KR take on that Wegmans type moat? The KR stores around Cincinnati have some very Wegmans ish vibes especially after they remodel and expand them. Their Harris Teeter stores have that moat too. But this is a capital intensive strategy to remodel/expand their entire store footprint, no? Link to comment Share on other sites More sharing options...
walkie518 Posted February 18, 2020 Share Posted February 18, 2020 The resilience of good grocers is impressive. Wegmans is my exemplar in this regard. Can KR take on that Wegmans type moat? The KR stores around Cincinnati have some very Wegmans ish vibes especially after they remodel and expand them. Their Harris Teeter stores have that moat too. But this is a capital intensive strategy to remodel/expand their entire store footprint, no? if Ocado's model in London can be replicated or at least assimilated into the US model for grocers, it's likely that KR gets well ahead of its peers in both waste and "shrinkage" my understanding is that Kroger will build sheds/hives of various sizes to accommodate regional needs ... net-net, KR gets brand new distribution to replace an old-school model that's light-years ahead of what everyone else is using in the US that Walmart or any other hypergrocer doesn't provide real waste figures is a shame, but I think it's likely we will see margin improvement @ KR that could be as pronounced as unexpected by markets should the Ocado sheds work at the same time, KR has not been a star so any improvement will yield good results ... obv the stock has moved faster than the distribution network has been upgraded, Berkshire's investment is no help to anyone just getting it either, but it will be interesting to see how this unfolds as Ocado's solutions have yet to be tested outside of London and each shed is a bit more expensive than to plan... Link to comment Share on other sites More sharing options...
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