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Company: Kroger Company (KR)
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edit "Competitors are investing in store remodeling, and Kroger is falling behind"

The company doesn't have a comprehensive store-remodeling plan. If you look at their capex investment over the last few years it is very low compared to other major competitors. They will likely invest in other formats (such as Marketplace) sometime soon, but their store base is aging and other grocers are investing.

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edit Competitors are investing in store remodeling, and Kroger is falling behind

The company doesn't have a comprehensive store-remodeling plan. If you look at their capex investment over the last few years it is very low compared to other major competitors. They will likely invest in other formats (such as Marketplace) sometime soon, but their store base is aging and other grocers are investing.

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edit Intense competition from Wal-mart driving down prices

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.

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edit Unions represent higher costs and pose labor risks

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.

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