Kroger's Scale, Partnerships, and Data Insights Afford It a Brand Advantage Amid Intense Competition

Of the traditional grocers, we believe Kroger's scale, partnerships, and data capabilities uniquely position it to defend its returns against a competitive onslaught that should intensify as Amazon, mass merchandisers, and hard discounters price aggressively to boost volume. Thus, we contend that Kroger still benefits from enduring intangible assets and cost advantages (even if its acquisition of Albertsons is derailed by regulators).