Not only does Kroger's unionized workforce mean that the company must pay its employees more than its non-unionized rivals, but Kroger also faces the possibility that its employees could strike, bringing much of its business to a standstill.
Kroger Aging Stores are Less Attractive than Competitors' Remodeled Stores
Top Contributor: H V | Created when NYSE:KR was $25.34 | Edit | History
The company doesn't have a comprehensive store-remodeling plan. Over the past few years, Kroger's capital expenditures have been much lower than its competitors. The company's store base is aging while other grocers are investing, making Kroger stores less appealing to consumers.
The company faces intense competition from supercenter discount stores such as Wal-Mart Stores (WMT), which are able to charge lower prices than Kroger and are continuing to expand their presence in the United States.