- Kroger (NYSE:KR) announces a strategy reset in front of its presentation at its investor day event.
- The company says its "Restock Kroger Plan" will be fueled by capital investments, cost savings and free cash flow.
- Kroger plans to expand partnerships to create customer value, including utilizing more of its capital to fund technology/infrastructure upgrades and create alternative revenue streams.
- Kroger will continue building its Internet of Things sensor network, video analytics and machine learning networks and complement those innovations with robotics and artificial intelligence to transform the customer experience.
- The Restock Kroger plan is expected to generate $400M in incremental operating margin by 2020. Also, the company expects to generate more than $4B of free cash flow over the next three years – nearly double what was generated over the previous three years.
- Kroger also tipped its plan to explore strategic alternatives for its convenience store business, including a potential sale. The company hired Goldman Sachs (NYSE:GS) to identify, review and evaluate the options.
- Looking at financial numbers, Kroger expects identical supermarket sales to improve in 2018 and for EPS to be flat to slightly up.
- "We have the scale, the data, physical assets and human connection to win," promises CEO Rodney McMullen.
- KR +4.38% premarket to $21.43.
- Source: Press Release
- Now read: Kroger's Potential Reward At The - Level Has To Outweigh Risk
Original article