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Financial Analysis for Kroger Co. - Research Paper Example

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Author : marinahagenes

Summary

Kroger Co. was formed in 1883 by Bernard Kroger in the region of Ohio and since then it has become one of the largest supermarket chains of America. It is the second largest supermarket with Wal-Mart being on the top. …

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Financial Analysis for Kroger Co.

For an industry like Kroger’s, the most important factor for consumers is price. The products available in supermarkets are not differentiated and therefore they cannot be advertised heavily. Much of the advertisement that is done is carried out on the basis of attracting families to shop at Kroger because it is cost effective to do so. Apart from being cost effective Kroger also has products of high quality which makes it popular among American consumers. Kroger Co. has 42 manufacturing plants and including dairies, beverages and meat plants and all of these plants are of the highest standards. In the recent years there has been a tremendous increase in the fuel prices and the recent financial meltdown has made things worse for many industries including Kroger. The rise in fuel prices caused an increase in costs of the products sold by Kroger. Kroger is both a manufacturing company and a retail outlet and was therefore heavily affected by the increase in cost of fuel and other raw materials. ...
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