Safeway (NYSE: SWY) is the second largest supermarket operator in the U.S. after Kroger (NYSE: KR), primarily operating as a food and drug retailer. It has many brands of its own such as Safeway, O Organics, Eating Right, Open Nature, Bright Green, etc. The stock has appreciated a commendable 50% this year but its 2Q2013 results declared last month were mixed as it missed consensus estimates on revenue but more »
As part owner of a publicly traded business you should want to own shares in a company that possesses an edge over competitors. The organic food and natural products provided by Whole Foods Market (NASDAQ: WFM) gives this business an edge in the commoditized grocery store arena. Whole Foods Market represents a good investment for the following six reasons.
Whole Foods Market caters to a growing niche where more »
One of the biggest trends of late has been the move to organic foods, with the consumption of organic and natural foods having grown gangbusters over the past few years. While many investors are loading their portfolios up with Whole Foods Market (NASDAQ: WFM), I think there might be a better way to play the organic food craze.
The average family of four spends about $400 on food per month according to the USDA. With food prices rising, eating away from home on the increase, and big-box stores such as Target expanding into groceries, Safeway (NYSE: SWY) has instituted several strategies to keep customers coming in to shop. The challenge is whether the programs differentiate Safeway from other grocers.
Safeway implemented the "Just for U" program more »
Low customer confidence due to an adverse economic environment has affected the performance of supermarket operators. Additionally, tighter market competition further eroded margins. However, as the economy begins to grow slowly, grocery stores are presented with an opportunity to improve performance. Let us look into which of the following supermarket operators, Safeway (NYSE: SWY), Kroger (NYSE: KR), and Delhaize (NYSE: DEG) is best prepared to reap benefits from a changing more »
Safeway (NYSE: SWY) senior vice president David Bond purchased 5,000 shares of the company’s stock on July 22, according to a Form 4 filed with the SEC. The filing now places Bond’s direct holdings of the grocery store at about 31,000 shares, in addition to about 5,500 shares in his 401k.
According to Insider Monkey’s analysis, stocks bought by insiders tend to narrowly outperform more »
It is very unusual for a non-cyclical grocery stock to rally 80% in one year's time, but that’s exactly what Kroger (NYSE: KR) has accomplished. The stock, which traded flat in 2010, 2011, and 2012, has taken off, but is it still a good buy?
How Does it Compare?
The only way to know if Kroger still presents value is to compare it to the grocery industry, and more »
World food retail market performance will grow at an estimated CAGR of 5.5% for the period of 2011-2016, a slight decline from 5.7% for the period 2007-2011. Grocery stores are facing stiff competition and price wars. Companies are battling these obstacles with strategies like expansion and store remodeling.
Three grocery stores are currently working on these strategies, which will improve their margins as well as profitability.
Strategic initiatives more »
Supervalu (NYSE: SVU), Safeway (NYSE: SWY), and Kroger (NYSE: KR) have been up double and even triple digits in the last year. Supermarkets still have some of the thinnest margins of any industry so one has to wonder: is the party over?
Go East, young man!
The excitement over Kroger may be justified as it agreed to acquire Harris Teeter supermarkets, a chain of middle to high end supermarkets located more »
Earlier this week Fool blogger Timothy Green wrote a great piece detailing Kroger's (NYSE: KR) expansion plans. But I can't help but feel he missed a key point when discussing the stock's valuation. Here's a snippet from the post:
''Grocery chains have low margins and slow growth, making investing in them usually unappealing. Kroger has seen its share price surge since the middle of 2012, up more »
Expect to see online grocery sales expand in the coming years, as more online shopping opportunities are made available to the public. Online grocery sales currently account for 1% of the $631 billion U.S. grocery market. As retailers perfect their revenue models for online grocery shopping, expect to see online grocery and home delivery services rapidly expanded to markets across the country.
Amazon, the perceived leader
When thinking about where you want to buy your food, the first consideration has to be quality. Nobody wants to buy rancid meat or moldy bread. Thankfully quality standards for food are pretty high in this country, and supermarkets almost never have spoiled food on their shelves.
After quality, the second biggest factor for practically everyone is price. You want to be sure you're receiving the most bang for more »
Perusing the scheduled earnings releases for July 18 and July 19, I found some companies from sectors I believe will fare well during the second half of 2013. The results should serve as guidance as to whether my belief is correct. Here's a rundown of what to expect, including the earnings estimate and what supports each firm's numbers.
Commercial aerospace a boon to profits
Reporting on July 19 more »
If you’re looking for an exciting investment, then it’s not likely that you’re going to look at Kroger (NYSE: KR). After all, the company has been around since 1883. If you’re not familiar with Kroger, then this might conjure up images of horse-drawn carriages, men wearing top hats, women in full skirts, and dust balls. However, Kroger has managed to change with the times incredibly well more »
Wal-Mart (NYSE: WMT) has earned its place in history as both a low cost department store, grocery store, pop culture joke, and as a great stock option. Along with it there are dozens of false rumors, some inflammatory, some inflated, about the company.
Wal-Mart may be one of the most misunderstood companies in history, or one of the most maligned. It is mocked for low prices, or the lower income more »
Acquisition may be an expensive way to expand, but it also may be a quicker and safer way than organic growth. The reason behind the higher price paid is that the market response has already been tested for the product and the business is in running mode.
Recently, even the more stable multi-department stores are taking this option as they see their domestic market near its maturity level. Entering new more »
Kroger (NYSE: KR), the largest grocery chain in the United States, just got even bigger. The Cincinnati, Ohio-based company recently acquired its smaller rival, Harris Teeter (NYSE: HTSI) for $2.4 billion in cash, adding 212 more stores and bringing its total store count up to 2,631.
According to the financial website InvestorPlace, 50 blue-chip companies raised their dividends during the second quarter of 2013. This despite stock market declines, which were reportedly because of the Federal Reserve’s hints that it may begin easing back on stimulus by as early as September.
Investors are still flocking to dividend companies, even though bond interest rates are starting to increase. Dividend companies can offer a steady income stream more »
Supermarkets are an essential part of the way we live. Unless you farm, you probably frequent your nearby grocery store. An investment in this industry could mean good returns in the long run.
Based on a report by the Food Marketing Institute, the average American purchases groceries 2.2 times a week. These shoppers buy over $600 billion worth of food every year. While growth might not be as rapid more »
During financially hard times, family budgets begin to cut on unnecessary expenses. Also, they search for the best bargains, making Costco (NASDAQ: COST), Walt-Mart (NYSE: WMT), and Safeway (NYSE: SWY) common places to visit. Hence, an economic downturn means a harder search for bargains and more business for low-cost stores. Let us look at what the future holds for the three mentioned above:
Loyalty paid with dividends
Catalysts have added more »
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